04:42 AM EDT, 09/19/2024 (MT Newswires) -- Bel Fuse ( BELFA ) said late Thursday it has agreed to acquire a majority stake in Enercon Technologies from Fortissimo Capital for up to $400 million in cash.

The company said it will initially acquire an 80% stake for $320 million in cash plus up to $10 million of potential payments in 2025 and 2026 and the remaining 20% by early 2027 based on future EBITDA performance.

The transaction, subject to regulatory approvals, is expected to close by the end of 2024. The company said it plans to use both cash on hand and existing credit facility to finance the acquisition.

Bel Fuse ( BELFA ) said the acquisition expands its exposure to the aerospace and defense market from 17.5% to 31% of total revenue. The deal is expected to be accretive to its GAAP earnings per share within a year and to Bel's non-GAAP earnings per share immediately, the company said.