TUALATIN, Ore., Oct. 1, 2019 /PRNewswire/ -- CUI Global, Inc.
(NASDAQ: CUI) (the "Company" or "CUI Global") announced that it has
completed the sale of the electromechanical components business of
its Power and Electromechanical segment (P&EM) to a private
entity for total consideration of $15 million, comprised
of approximately $4.7
million cash paid at closing, the retirement of approximately
$5.3 million promissory note,
and a guaranteed five-year earnout receivable note of
$5.0 million issued by the buyer to
CUI Global. The electromechanical business accounted for
approximately 36% of P&EM segment revenues of $76.4 million in 2018. Upon the closing of the
transaction CUI Global will retain within the P&EM segment its
Power business, including an approximate 20% equity interest in
Virtual Power Systems.
The transaction is a step in CUI Global's previously announced
transformation plan to reshape the Company into a diversified
energy infrastructure services provider to North American energy
market segments through an aggressive acquisition strategy that
leverages the traction that CUI Global's Orbital energy segment has
gained with North American oil and gas customers.
"The sale of our electromechanical business puts us on a path to
divesting other, non-core business within the P&EM segment,
strengthens our balance sheet, and will contribute to the buildout
of a diversified energy services platform," stated William Clough, president and CEO of CUI Global.
"We remain committed to utilizing CUI Global as the public company
platform through which to aggregate energy and telecommunications
infrastructure operators to create a new market entrant in the
North American energy services industry."
About CUI Global, Inc.
Delivering Innovative Technologies for an Interconnected
World . . . . .
CUI Global, Inc. is a publicly traded company dedicated to
maximizing shareholder value through the acquisition and
development of innovative companies, products and technologies.
From Orbital Gas Systems' advanced GasPT® platform targeting the
energy sector, to CUI Inc.'s advanced power platform serving the
networking and telecom space, CUI Global and its subsidiaries have
built a diversified portfolio of industry leading technologies that
touch many markets. As a publicly traded company, shareholders can
participate in the opportunities, revenues, and profits generated
by the products, technologies, and market channels of CUI Global
and its subsidiaries. But most important, a commitment to conduct
business with a high level of integrity, respect, and philanthropic
dedication allows the organization to make a difference in the
lives of their customers, employees, investors and global
community.
For more information please
visit: http://www.cuiglobal.com
Important Cautions Regarding Forward Looking
Statements
This document contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Such statements are subject to risks and uncertainties that could
cause actual results to vary materially from those projected in the
forward-looking statements. The Company may experience significant
fluctuations in future operating results due to a number of
economic, competitive, and other factors, including, among other
things, our reliance on third-party manufacturers and suppliers,
government agency budgetary and political constraints, new or
increased competition, changes in market demand, and the
performance or reliability of our products. These factors and
others could cause operating results to vary significantly from
those in prior periods, and those projected in forward-looking
statements. Additional information with respect to these and other
factors, which could materially affect the Company and its
operations, are included in certain forms the Company has filed
with the Securities and Exchange Commission.
External IR Counsel:
LHA Investor Relations
Sanjay M. Hurry
T: 212-838-3777
cuiglobal@lhai.com
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SOURCE CUI Global, Inc.