| |
|
June 19, 2000
- For Immediate Release
Tustin, CA,
USA and Wavre, Belgium - Cherokee International LLC announced
today the completion of the acquisition of Industrial and Telecommunication
Systems, comprising of Mitra Power Systems and its sister entity, Mechanical
and Automation Systems (MAS) and subsequently to be named Cherokee Europe.
The acquisition substantially expands Cherokee's European presence and
strengthens its capabilities in the rapidly growing telecommunications
system market. Terms of the transaction were not disclosed.
Mitra Power Systems is one of Europe's leading designers and manufacturers
of sophisticated, custom-designed power supplies for original equipment
manufacturers (OEMs) of telecommunications systems, Internet infrastructure,
and medical and industrial applications. Mitra is a world leader in embedded
power supplies for cellular networks. Products include rectifiers for
outdoor base stations for PCN networks and central exchange telecom systems,
DC/DC converters for wireless base stations, and energy systems used to
power fiber optic networks. The Company was formed in 1998 following the
spin-off from the Philips Electronics Division. Mitra is based in Wavre,
Belgium, with additional operations in France, Germany, the Netherlands,
and Sweden. Mitra's manufacturing and design operations are fully ISO
9000 and 14001 and BABT compliant. The company has received several awards
for responsiveness and customer overall satisfaction from leading European
telecommunications companies.
Also based in Wavre, Belgium, MAS specializes in the development and manufacture
of custom, integrated mechanical and enclosure solutions, electro-mechanical
assemblies, and general precision machining. Products include supply racks
for signal generators used for railway traffic control and customized
packing and enclosures for power supplies systems. MAS is fully ISO 9000
and 140001 compliant and also AQAP 110 certified.
Formed in 1978, Cherokee International is a leading US designer and manufacturer
of a broad range of custom power supplies for OEMs in the telecom, networking,
computing, and other electronic equipment industries. Cherokee is based
in Tustin, California and maintains sophisticated and highly automated
manufacturing plants in Tustin and Irvine, California, Guadalajara, Mexico,
and Bombay, India. All facilities are ISO 9000 compliant.
"We are especially delighted by the opportunity to expand Cherokee's base
into Europe where Mitra has a dominant position in the telecom power supply
industry," said Pat Patel, Cherokee's founder and CEO. "The two companies
have very similar cultures and complement each other extremely well. Together,
we will offer our customers expanded geographic reach, enhanced engineering
design capabilities, more competitive pricing, and improved flexibility
for more rapid and responsive new product design and global delivery."
"Cherokee is one of the leading US suppliers, and we are one of the leading
European suppliers," said Marcel Miller, general manager of Mitra. "Our
customers require suppliers that understand local technical and market
differences but also have the scale and geographic reach to design and
deliver world-class, quality products quickly, dependably, and economically.
The combination with Cherokee enhances both companies' ability to meet
these increasingly demanding, but welcome, customer expectations."
Marcel Miller will be promoted to General Manager of Cherokee Europe.
He joined Philips, Mitra's predecessor, as a design engineer in 1978 and
held the positions of director of engineering and then director of sales
and marketing before being named General Manager of Mitra.
All of the major shareholders of Cherokee International invested in this
transaction as did the OCM/GFI Power Opportunities Fund, a $454 million
private equity fund that invests exclusively in successful companies in
the power industry. The Fund is co-managed by GFI Energy Ventures LLC
and Oaktree Capital Management LLC, a $15 billion investment company based
in Los Angeles, California. GFI, Oaktree, and RIT Capital (the London-based,
publicly-traded investment trust chaired by Lord Rothschild) have been
substantial investors in Cherokee since the company was recapitalized
in May 1999. GFI principal Ian Schapiro commented: "The Mitra/MAS transaction
furthers our investment strategy of supporting successful and innovative
companies positioned to meet the challenging requirements of an increasingly
competitive power market. We are delighted to build on our Cherokee investment
by helping to bring about this strategically powerful combination."
|
