Belden to acquire Grass Valley

Published: February 11, 2014 MEA

WORLD: Belden Inc has submitted a binding offer to purchase Grass Valley from private equity investment firm, Francisco Partners, for US$220 million. Belden plans to combine Grass Valley with Miranda using Grass Valley as the name of the combined businesses.

According to a statement from Grass Valley, combining the two manufacturers’ complementary portfolios, intellectual property, engineering talent, market access and manufacturing capacity will provide customers with access to ‘the most comprehensive, innovative products in the broadcast infrastructure industry’. The combined businesses aim to ‘expand the product portfolio tremendously to create end-to-end solutions for our customers’.

Belden believes that the ability to purchase an end-to-end solution from the combined businesses will reduce complexity and increase functionality, ease-of-setup, and maintenance and operability. In addition, it states that ‘customers will have access to the most comprehensive, innovative products in the broadcast infrastructure industry through one organisation’.

‘We are extremely excited to have Grass Valley join the Belden family,’ said John Stroup, president and CEO of Belden Inc. ‘By combining Grass Valley and Miranda, we will create the broadcast industry’s largest and most complete portfolio.’

‘We are pleased to have partnered with Grass Valley’s management team to streamline the company’s offerings and improve its performance,’ said David Golob, a partner at Francisco Partners and Grass Valley director. ‘The contemplated combination of Belden’s Miranda business unit and Grass Valley will position them to become the clear leader in the broadcast equipment market by delivering the most complete solution to broadcasters worldwide.’

The binding offer is subject to consultation with Grass Valley’s foreign labour works council, after which Belden will enter into a definitive agreement. The transaction is expected to close by March 31st, 2014 and is subject to regulatory approvals, the completion of audited financial statements, and other customary closing conditions.

The news comes hot on the heels of Grass Valley’s announcement that it is increasing its presence in the Middle East. To further drive support for the region, Grass Valley has announced three new hires for its Middle East operations in Dubai - a regional sales manager, a customer services engineer and a marketing coordinator. Added to this, it is installing a new demonstration facility in its Dubai office to create a venue where customers and end-users can see its latest broadcast and media technologies. Finally, it is also launching its first Arabic web site www.ar.grassvalley.com complete with product information and video tutorials to further promote Grass Valley’s dedication to the growing broadcast market in the Middle East.