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General Cable To Acquire Alcan Cable from Rio Tinto
Edited by : AL CIRCLE
1 min read
General Cable Corp. says it will acquire Alcan Cable, the wire and cable division of Rio Tinto PLC. The purchase price is $185 million in cash, subject to customary adjustments primarily related to working-capital levels at closing as provided in the definitive purchase agreement.
General Cable expects to use its asset-based revolving credit facility to principally fund the transaction, which is expected to close later this year.
Alcan Cable employs approximately 1,050 associates in its aluminum cable manufacturing and distribution facilities serving the energy and construction markets in the U.S., Canada, Mexico and China. The company estimates that the acquisition will contribute approximately $650 million to $700 million in revenues at current metal prices.
"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," says Gregory J. Lampert, president and CEO of General Cable North America.
General Cable expects to use its asset-based revolving credit facility to principally fund the transaction, which is expected to close later this year.
Alcan Cable employs approximately 1,050 associates in its aluminum cable manufacturing and distribution facilities serving the energy and construction markets in the U.S., Canada, Mexico and China. The company estimates that the acquisition will contribute approximately $650 million to $700 million in revenues at current metal prices.
"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," says Gregory J. Lampert, president and CEO of General Cable North America.
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