Thomas & Betts Corp. has signed definitive agreements to acquire the Joslyn Hi-Voltage and Power Solutions businesses from Danaher Corporation for $280 million and Drilling Technical Supply SA (DTS), a privately held French manufacturer of hazardous lighting and electrical controls, for approximately $20 million. Both transactions are expected to be funded from available cash resources. Subject to the satisfaction of certain customary closing conditions, the transactions are expected to close in the third quarter.
“These acquisitions are an excellent strategic fit for Thomas & Betts. Joslyn Hi-Voltage products complement our market-leading portfolio of high-voltage connectors and related products used primarily by utilities for the distribution of electrical power,” said Dominic J. Pileggi, chairman and chief executive officer. “We are also very excited to extend our reach into the attractive power quality and protection markets with the leading brands from Danaher Power Solutions. The acquisition of DTS expands our already substantial footprint in critical hazardous and emergency lighting applications. Overall, these acquisitions broaden our portfolio of leading brands and allow us to continue to build on our strong relationships with utility, industrial, OEM and commercial customers.”
Joslyn Hi-Voltage offers a broad range of high voltage electric switches, reclosers, vacuum interrupter attachments and related products used mainly by electric utilities. Power Solutions offers a broad range of products and services designed to ensure a high quality, reliable flow of power to commercial and industrial customers for mission-critical applications such as datacenters. DTS offers explosion-proof lighting and electrical protection equipment for a broad array of industrial markets including drilling, oil and gas, marine, chemical, pharmaceutical and food products.
For 2007, management’s preliminary assessment is that the acquisitions will contribute approximately $70 million to revenues and have a negligible net impact on earnings per share due to the amortization of acquisition-related intangible assets. For the calendar year 2008, the company expects the combined acquisitions to contribute approximately $175 to $185 million in revenues and to be accretive to earnings per share by approximately $0.10 to $0.15.