The Gores Group, a Los Angeles-based investment firm, has acquired Tyco Electronics Power Systems from Tyco Electronics Ltd. for $100 million in cash, subject to a final working capital adjustment.
Tyco, a former division of Bermuda-based Tyco Electronics Ltd., has been renamed Lineage Power and will be part of the newly formed Lineage Holdings Inc., which will be based in Mesquite, Texas. Lineage Holdings operates through two separate entities, Lineage Power and Vincotech. Lineage Power provides power supply and power conversion products and services to several industries, including telecommunications. It has 1,900 employees. Vincotech is based in Germany, with 600 employees and operations in Hungary and China. Vincotech provides power modules and other technologies used in industrial, automotive and GPS applications.
Gores is an investor, primarily in the technology, telecommunications, business services and industrial sectors. The investment firm’s portfolio includes Brand-Rex Ltd., a designer and manufacturer of copper and fiber-based cabling systems, headquartered in Glenrothes, Scotland, with facilities across Europe.
“The Gores Group is delighted to complete the acquisition of Tyco Electronics Power Systems. We believe that Lineage is well-positioned to take advantage of the growth opportunities present in its industry,” said Ryan Wald, managing director of Gores Group. “Gores will provide financial support and leverage its operating expertise to strength its leadership position worldwide and create a platform for profitable growth.”
All U.S. employees will become members of the new company, while the assets and employees of the business in Shanghai, India, Germany and other European jurisdictions will be transferred following the satisfaction of certain regulatory and other customary closing conditions.
The power unit’s former parent, Tyco Electronics, became an independent, publicly traded company in June, splitting from its former parent, Tyco International.