GENERAL SIGNAL AGREES TO ACQUIRE MAGNETEK INC'S MEDIUM-POWER TRANSFORMER BUSINESS.STAMFORD, Conn.--(BUSINESS WIRE)--June 23, 1995--General Signal Corporation (GSX GSX Gelled Slurry Explosive GSX Ground Storm X (VMware) GSX Gran Sport Extra (Buick Skylark) GSX Gasco Energy Company GSX Gender Sexuality XYZ : NYSE NYSE See: New York Stock Exchange ) announced today that it had reached a definitive agreement for the acquisition of MagneTek Electric, Inc., the medium-power transformer business of MagneTek, Inc. (MAG:NYSE), according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. General Signal chairman and chief executive officer Edmund M. Carpenter. Terms of the transaction were not disclosed. "Combining MagneTek Electric, Inc. with our Hevi-Duty Electric transformer operation gives us a strong position in the medium-power transformer segment and makes it feasible to penetrate international markets and capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. increasing demand within the electric utility industry," Mr. Carpenter said. "In addition, significant cost savings and sales synergies will be realized from the integration of these two businesses." MagneTek Electric, located in Waukesha, Wisconsin Waukesha [ˈwɑkəˌʃɑ] is a city in and the county seat of Waukesha CountyGR6, Wisconsin, United States. As of the 2000 census, Waukesha had a total population of 64,826. , is a market leader in the design and manufacture, sales, and installation of medium-sized power transformers and related products. Power transformers are used by utilities to reduce, or "step down" power in substations before it is sent on to residential, commercial, and industrial users. "Medium" power transformers have a capacity of from 10 to 100 million volt amperes 1. (Elec.) A unit of electric measurement equal to the product of a volt and an ampere. For direct current it is a measure of power and is the same as a watt; for alternating current it is a measure of apparent power. (MVA MVA abbr. motor vehicle accident MVA Motor vehicular/vehicle accident, see there ). Hevi-Duty, a division of General Signal's GS Electrical Power Systems Group, manufactures medium-power transformers for electric utilities in the 10 - 30 MVA size. Estimated sales of the combined power transformer business will be approximately $130 million. "The transaction is part of our ongoing effort to augment the competitive position and growth of each of our operations. It will be the second addition to our GS Electrical Power Systems Group this year and our 27th "bolt-on" acquisition in six years," Mr. Carpenter concluded. -0- General Signal Corporation, with 1994 sales of $1.53 billion, is a leading equipment manufacturer for the process control, electrical, and industrial technology industries. CONTACT: Nino Fernandez, General Signal (203) 329-4320 |
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