Move comes just five years after Belden acquired the broadcast manufacturing specialist
Belden is planning to sell its broadcast manufacturing business Grass Valley as part of a wider review of the company that will include a major cost cutting programme.
Belden announced the plan as it unveiled its third quarter 2019 results for the period ended September 29, 2019, explaining that a new “broad-based cost reduction programme” is expected to result in $40 million of annual savings.
John Stroup, president, CEO, and chairman of Belden, said it would be “in the best interests of our shareholders, customers, and employees to separate Grass Valley from Belden.”
He added that this would “enable Grass Valley to more effectively execute its strategic plan and pursue growth opportunities. Further, this separation will simplify Belden’s portfolio and improve organic growth and revenue visibility.”
Belden revenues for the quarter totalled $620.3 million, a fall of $35.5 million, or 5.4%, compared to the third quarter 2018.
Belden reported a net loss of $297 million, citing a $337 million after-tax non-cash impairment charge related to Grass Valley.
Headquartered in Montreal, Grass Valley has been in the broadcast business for 60 years, producing a wide range of kit and software from cameras and switchers through to playout and editing services.
Cable, connectivity and networking specialist Belden, which was founded in Chicago in 1902, acquired Grass Valley in 2014.