Emerson agreed to acquire the outside plant and power systems business of Marconi Corporation PLC for $375 million in cash. The Marconi power business, based in Lorain, Ohio, is a leading provider of DC power products, engineering and installation services, and outside plant products to major telecommunication carriers throughout North America. Its revenues for the year ended March 31, 2004, were approximately $380 million. This acquisition will allow Emerson to strengthen its presence with the regional Bell companies, inter-exchange carriers, wireless and cable companies in North America -- and leverage its global assets. The business recorded sales of approximately £209 million and an operating profit, before goodwill amortisation and exceptional items, of approximately £14 million, in the year ended 31 March 2004. Net assets at 31 March 2004 were £48m before pension liability and goodwill.
Emerson Network Power provides a full spectrum of reliable power solutions, including inbound power, connectivity, power supplies, power systems and precision cooling for telecommunications networks, data centers, health care and industrial facilities worldwide.
Marconi said that proceeds from the sale will be used to pay down debt. Following the close of this transaction, Marconi's outstanding debt will be reduced to approximately US$104 million. The company's Board confirmed its strategy to continue to pay down its remaining Senior Notes. http://www.marconi.comhttp://www.emersonnetworkpower.com
- Earlier this year, Advanced Fibre Communications (AFC) acquired Marconi's North American Access (NAA) business for $240 million in cash. Marconi NAA's major products included a fiber-to-the-curb (FTTC) platform and DLCs. The acquisition would also provide AFC with a greater ability to penetrate major RBOC accounts. Notably, Marconi's fiber-to-the-curb platform is deployed extensively at BellSouth, which has been pursuing a fiber-to-the-curb (FTTC) architecture since 1995.
