CHICAGO - Littelfuse , Inc. (NASDAQ: NASDAQ:LFUS), an industrial technology manufacturer with a market capitalization of $5.88 billion, has finalized the acquisition of a 200mm wafer fabrication facility in Dortmund, Germany, from Elmos Semiconductor SE (FSE: ELG). According to InvestingPro analysis, the company is currently trading near its 52-week low, suggesting potential value opportunity for investors. The transaction, which was initially announced on June 28, 2023, officially took effect on December 31, 2024.
The acquired Dortmund facility is expected to bolster Littelfuse's capabilities in power semiconductor technology and expand its manufacturing prowess. With a strong current ratio of 3.55 and moderate debt levels, the company is well-positioned to integrate this acquisition. This strategic move aims to enhance the company's long-term growth opportunities in various industrial sectors, including energy storage, automation, motor drives, and power supplies.
Dave Heinzmann, President & CEO of Littelfuse, expressed enthusiasm about the integration of the Dortmund fab's skilled workforce into their team. He emphasized that the acquisition aligns with the company's growth strategy and will augment their technological offerings in power semiconductors.
Chad Marak, Senior Vice President and General Manager of Littelfuse Semiconductor Business, also remarked on the acquisition's role in driving long-term organic growth by meeting customer demands in power conversion applications across multiple industrial markets. The Dortmund fab is set to complement Littelfuse's existing operations and contribute to the expansion of its technology team and operational capabilities.
Littelfuse, headquartered in Chicago, operates globally, employing approximately 16,000 people across more than 20 countries. The company serves a wide range of industrial, transportation, and electronics markets, providing innovative and reliable solutions to over 100,000 end customers.
The completion of this acquisition marks a significant step in Littelfuse's expansion of its semiconductor business. The information reported is based on a press release statement from Littelfuse, Inc.
"In other recent news, Littelfuse Inc. reported its third-quarter 2024 earnings, exceeding sales and revenue expectations despite a 7% year-over-year decline. The company announced revenues of $567 million, with robust free cash flow and solid net debt-to-EBITDA leverage. However, Littelfuse anticipates a sequential decline in fourth-quarter sales and a modest reduction in full-year sales, mainly due to product line pruning. The projection for Q4 sales range from $510 million to $540 million.
In a recent analysis, Oppenheimer maintained an Outperform rating on Littelfuse, with a price target of $310, suggesting potential for growth. The firm's analysis indicated that despite the recent underperformance of LFUS shares, the underlying value of Littelfuse remains strong. The analyst's comments underscored the view that current sales estimates are conservative relative to the company's past performance and potential.
These recent developments follow Littelfuse's completion of the C&K acquisition in 2022, which contributed to increased sales in the Electronics segment. The company also reported growth in medical and data center applications, and an increase in passenger vehicle sales in China."
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