Tustin-based Cherokee International Corp., a maker of power supply gear for electronics that’s been shopping itself since April, is being sold for $105 million in cash.
Lineage Power Holdings Inc., part of Los Angeles-based private equity firm Gores Group LLC, is buying Cherokee.
The company, based near Dallas, is the former power systems unit of Bermuda-based Tyco Electronics Ltd. Lineage was bought late last year by Gores Group.
Lineage is paying 33% more than what Cherokee’s shares were trading at before the offer was made.
Shares of Cherokee closed up 24% Thursday with a market value of $60 million.
Cherokee’s board and major shareholders have approved the sale. It still needs shareholder and regulatory approvals and could close in the fourth quarter.
The company, which makes power supplies for medical devices, networking equipment and computers, is set to become a Lineage division.
In April, Cherokee hired Little Rock, Ark.-based Stephens Inc. to assist in “exploring various strategic alternatives for the company,” including a sale.
Cherokee’s market value has fallen by about 40% in the past year.
It has seen sales decline after it lost two large telecommunications customers in Europe and a medical device maker in Mexico, according to the company.
For 2007, Cherokee counted sales of about $129 million, down 11% from 2006. It lost $9 million last year, versus a 2006 profit of $1 million.
