Power-One Buys Magnetek Unit

It sees the deal adding to earnings.
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Power-One (PWER) agreed to buy Magnetek's (MAG) - Get Report Power Electronics Group for $71.7 million in cash.

Camarillo, Calif.-based Power-One said the deal will add to earnings next year and boost revenue by more than 50% next year. The Power Electronics Group sells power supplies and alternative energy products to a wide range of customers and markets.

Power-One has obtained financing for the acquisition and the transaction is expected to close in October, 2006, subject to customary closing conditions.

"This acquisition will be additive to earnings per share, even without any synergies, and presents significant opportunities to further our strategic goals," said Chairman Steve Goldman. "The Power Electronics Group has been an excellent contributor to Magnetek and its addition will augment Power-One in a number of ways, including adding low-cost manufacturing capability in China, custom design resources in Europe, and entry into the Alternative Energy market. In addition, we expect significant synergies from our increased purchasing power in the electronic components marketplace. Overall, we anticipate that the acquisition will favorably impact our financial performance increasingly throughout 2007 and 2008 as synergies are realized."