Littelfuse to acquire select product portfolio from ON Semiconductor

Ian Highley, Senior Vice President and General Manager, Semiconductor Products and Chief Technology Officer, Littelfuse, commented: "The acquisition of this portfolio aligns with our strategy to expand in power semiconductor applications as well as increase our presence in the automotive electronics market. These products have strong synergies with our existing circuit protection business, will strengthen our channel partnerships and customer engagement and expand our power semiconductor portfolio."

Littelfuse also plans to invest approximately $30m in its semiconductor fabrication locations to enhance its production capabilities, add significant capacity to its China fabrication facility and transfer the production of the acquired portfolio. The transfers will occur over the next few years, as the company works with customers on their timing and requirements. The expected productivity gains from this investment will drive long term profitable growth across the company's semiconductor business.

"Once we complete the transfer of these products, we expect this acquisition to have EBITDA margins of more than 30%. Including amortisation, interest and integration expenses, we expect the earnings per diluted share impact of this acquisition to be neutral in 2016 and accretive in 2017 and beyond," added Meenal Sethna, Executive Vice President and Chief Financial Officer, Littelfuse.

Wachtell, Lipton, Rosen and Katz is acting as legal advisor to Littelfuse.