The Gores Group Completes Acquisition of Tyco Electronics Power Systems and Announces Formation of Lineage Holdings, Inc.
December 28, 2007
Los Angeles, CA December 28, 2007--The Gores Group, a leading investment firm, announced today that it closed its acquisition of Tyco Electronics Power Systems from Tyco Electronics, Ltd. (NYSE: TEL; BSX: TEL) through a newly formed company, Lineage Holdings, Inc. ("Lineage"), for $100 million in cash, subject to a final working capital adjustment.
Lineage Holdings operates through two separate entities, Lineage Power and Vincotech. Lineage Power is headquartered in Mesquite, Texas, with approximately 1900 employees and provides power supply and power conversion products and services to telecom service providers and enterprise customers. Vincotech provides power modules and other technologies used in industrial, automotive, and GPS applications. Vincotech is based in Germany, with 600 employees and manufacturing operations in Hungary and China.
"The Gores Group is delighted to complete the acquisition of Tyco Electronics Power Systems (Lineage Holdings). With its heritage of industry leading power conversion and power module products, blue chip customers and committed employees, we believe that Lineage is well positioned to take advantage of the growth opportunities present in its industry," said Ryan Wald, Managing Director of The Gores Group. "Gores will provide financial support and leverage its operating expertise to strengthen its leadership position worldwide and create a platform for profitable growth."
All U.S. employees will become members of the new company on the effective date of the close, while the assets and employees of the business in Shanghai, India, Germany and certain other European jurisdictions will be transferred following the satisfaction of certain regulatory and other customary closing conditions.
About The Gores Group, LLC
Founded in 1987, The Gores Group, LLC is a private equity firm focused on acquiring controlling interests in mature and growing businesses which can benefit from the firm's operating experience and flexible capital base. The firm combines the operational expertise and detailed due diligence capabilities of a strategic buyer with the seasoned M&A team of a traditional financial buyer. The Gores Group, LLC has become a leading investor having demonstrated over time a reliable track record of creating substantial value in its portfolio companies alongside management. The firm's current private equity fund has committed equity capital of $1.3 billion. Headquartered in Los Angeles, California, The Gores Group, LLC maintains offices in Boulder, Colorado and London. For more information, please visit www.gores.com
About Tyco Electronics
Tyco Electronics Ltd. is a leading global provider of engineered electronic components, network solutions, wireless systems and undersea telecommunication systems, with fiscal 2007 sales of US$13.5 billion to customers in more than 150 countries. We design, manufacture and market products for customers in industries from automotive, appliances and aerospace and defense to telecommunications, computers and consumer electronics. With approximately 8,000 engineers and worldwide manufacturing, sales and customer service capabilities, Tyco Electronics' commitment is our customers' advantage. More information about Tyco Electronics can be found atwww.tycoelectronics.com
For more information, please contact:
The Gores Group, LLC
310-209-3010 - Office
310-209-1373 - FAX
Sitrick and Company
310-788-2850 - Office