Belden Inc. has purchased Cable Design Technologies (CDT) Corp.'s NORCOM wire and cable business in Kingston, Ont.
October 29, 2002
Belden Inc. has purchased Cable Design Technologies (CDT) Corp.’s NORCOM wire and cable business in Kingston, Ont. for an estimated US$20 million.
Plans call for the St. Louis, Mo. firm to pay US$11.3 million up front for accounts receivable, inventory and equipment. The remainder will come through additional contingency payments over the next three years.
Belden CEO C. Baker Cunningham said the purchase, expected to be finalized by Oct. 31, strengthens the company’s presence in the North American market.
The Kingston plant employs 300 people and produces cable for the communications industry, including outside plant, central office and exchange cable. NORCOM is a division of NORDX/CDT, the Canadian subsidiary of CDT.
Revenues during the past 12 months were US$50 million, down from US$100 million during the previous year.
"This transaction presented an opportunity to exit a business where we had a very small market share and that was not strategic to our long-term plan," said Fred Kuznik, CDT’s CEO. "The cash received from the sale will be used to reduce bank debt and other liabilities We view this disposition as positive for future earnings."