The Wall Street Journal
General Cable To Acquire Alcan Cable For $185 Million
Edited by : AL CIRCLE
2 min read
General Cable Corp. (BGC) agreed to acquire Alcan Cable, the wire and aluminum cable business of mining company Rio Tinto PLC (RIO, RIO.LN), for roughly $185 million in a move expected to expand its product offerings.
General Cable, a maker of copper, aluminum and fiber-optic wire and cable products for markets including energy, construction and communications, expects the deal to close in the second half of this year.
"The addition of aluminum construction cables further expands the range of products we offer to distributors serving electrical and industrial contractors and increases our capacity to efficiently serve our electric utility customers with transmission and distribution products," said Gregory J. Lampert, president and chief executive of General Cable North America.
The company expects the deal will add about $650 million to $700 million in annual revenue at current metal prices.
Alcan Cable employs about 1,050 in its aluminum cable manufacturing and distribution facilities servicing the energy and construction markets in North America and China.
General Cable in February reported that its fourth-quarter earnings plunged 87% as mark-to-market losses on derivatives and debt expenses weighed on bottom-line results, though volume and margins also slipped.
Shares closed Friday at $27.06 and were inactive premarket. The stock is down by roughly a third in the past year.
General Cable, a maker of copper, aluminum and fiber-optic wire and cable products for markets including energy, construction and communications, expects the deal to close in the second half of this year.
"The addition of aluminum construction cables further expands the range of products we offer to distributors serving electrical and industrial contractors and increases our capacity to efficiently serve our electric utility customers with transmission and distribution products," said Gregory J. Lampert, president and chief executive of General Cable North America.
The company expects the deal will add about $650 million to $700 million in annual revenue at current metal prices.
Alcan Cable employs about 1,050 in its aluminum cable manufacturing and distribution facilities servicing the energy and construction markets in North America and China.
General Cable in February reported that its fourth-quarter earnings plunged 87% as mark-to-market losses on derivatives and debt expenses weighed on bottom-line results, though volume and margins also slipped.
Shares closed Friday at $27.06 and were inactive premarket. The stock is down by roughly a third in the past year.
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