ACQUISITION OF CINCH

12 Months Ended

Dec. 31, 2011

ACQUISITION OF CINCH [Abstract]

ACQUISITION OF CINCH

2.   ACQUISITION OF CINCH

On January 29, 2010 (the “Acquisition Date”), the Company completed its acquisition of 100% of the issued and outstanding capital stock of Cinch from Safran S.A.  Bel paid $39.7 million in cash and assumed an additional $0.8 million of expenses in exchange for the net assets acquired.  The transaction was funded with cash on hand.  Cinch is headquartered in Lombard, Illinois and has manufacturing facilities in Vinita, Oklahoma; Reynosa, Mexico; and Worksop, England.

Cinch manufactures a broad range of interconnect products for customers in the military and aerospace, high-performance computing, telecom/datacom, and transportation markets.  The addition of Cinch's well-established lines of connector and cable products and extensive clientele has enabled Bel to broaden its customer base to include aerospace and military markets.  The acquisition of Cinch has also created the opportunity for expense reduction and the elimination of redundancies.  The combination of these factors has given rise to $2.3 million of goodwill ($1.2 million allocated to the Company's North America operating segment and $1.1 million allocated to the Company's Europe operating segment).

During the years ended December 31, 2010 and  2009, the Company expensed $0.3 million and $0.6 million, respectively, of acquisition-related costs.  These costs are included in selling, general and administrative expenses in the accompanying condensed consolidated statement of operations.

Cinch's results of operations have been included in the Company's condensed consolidated financial statements for the period subsequent to the Acquisition Date.  Cinch contributed revenues of $55.1 million and estimated net earnings of $1.2 million to the Company for the period from the Acquisition Date through December 31, 2010.  The unaudited pro forma information presents the combined operating results of the Company and Cinch.  The following unaudited pro forma consolidated results of operations assume that the acquisition of Cinch was completed as of January 1, 2009 (in thousands):

	Year Ended December 31,
	2010		2009
Revenue	$	306,226	$	237,723
Net earnings (loss)		14,540		(7,500	)
Earnings (loss) per Class A common share - basic and diluted		1.17		(0.65	)
Earnings (loss) per Class B common share - basic and diluted		1.26		(0.65	)