Belden Inc. and Cable Design Technologies Inc (CDT) have entered into a definitive agreement that the two companies describe as a merger of equals.The combined company will be called Belden CDT Inc. a...
January 1, 2004
Belden Inc. and Cable Design Technologies Inc (CDT) have entered into a definitive agreement that the two companies describe as a merger of equals.
The combined company will be called Belden CDT Inc. and will be headquartered in St. Louis, Mo.
Belden CDT, with sales of approximately US$1.3 billion, manufacturers high-speed electronic copper cable and will focus on products for the specialty electronics and data networking markets, including connectivity.
The transaction is expected to be completed during the second quarter of this year.
Under the terms of the agreement, each Belden share will be exchanged for two shares of CDT. Upon completion of the merger, the companies will execute a one-for-two reverse stock split, reducing the number of shares.
The combined company is expected to have approximately 46 million shares outstanding, after the reverse split.
Former CDT shareholders will own approximately 45% of the combined company, while former Belden shareholders will own approximately 55%.
Following the completion of the merger expected sometime this quarter, Bryan Cressey, chairman of the board of CDT, will have the same position of the combined company.
C. Baker Cunningham, chairman, president, and CEO of Belden, will serve as president and CEO.
The merger, which is expected to be approved by all shareholders, will increase shareholder value by reducing costs, broadening the product portfolio and diversifying core markets, said Cressey.