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EXHIBIT 99.1
(BW) (CA-GFI-ENERGY-VENTURES) CHEROKEE INTERNATIONAL ACQUIRES MITRA POWER AND
MAS OF BELGIUM
Business Editors
TUSTIN, Calif. & Wavre, Belgium-(BUSINESS WIRE)-June 19, 2000-
Transaction Brings Together the Leading U.S. And European Power Supply
Companies Serving the Rapidly Growing Telecom and Computer Power Market
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 14001 compliant and also AQAP 110 certified.
Formed in 1978, Cherokee International is a leading U.S. designer and
manufacturer of a broad range of custom power supplies for OEM's in the
telecom, networking, computing, and other electronic equipment industries.
Cherokee is based in Tustin, Calif. and maintains sophisticated
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and highly automated manufacturing plants in Tustin and Irvine, Calif.,
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 U.S. suppliers, and we are one of the
leading European suppliers," and 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. 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."
-30-ts/sd*
CONTACT: Cherokee International
Van Holland, 714/544-6665
or
Mitra Power Systems
Marcel Miller, 32-10-438-518
or
GFI Energy Ventures LLC
Ian Schapiro, 310/442-0542
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