ADC Telecommunications Inc. has announced an agreement to buy the Krone Group, a supplier of copper- and fiber-bas...
March 26, 2004
ADC Telecommunications Inc. has announced an agreement to buy the Krone Group, a supplier of copper- and fiber-based connectivity and cabling products used in public access and enterprise networks from GenTek Inc.
“This is an ideal acquisition and a perfect fit with ADC’s new strategic initiative to become the leader in global network infrastructure solutions and services,” said Robert Switz, president and CEO of ADC.
Through the combination of product lines, people and facilities, ADC says will quickly achieve a larger global scale and presence in supplying global network infrastructure products.
This includes an accelerated entry into the emerging growth markets of China, India, Russia, Eastern Europe, and Southeast Asia.
The proposed acquisition is valued at approximately US$350 million in which ADC will pay cash of approximately US$291 million and assume certain defined liabilities consisting principally of Krone’s pension obligation for its German workforce.
The management teams feel this is an ideal combination that ultimately benefits all our customers, the companies said in a statement released today.
"Our industry always enjoys a good rumour and there has been lots of fuel for the fire of late," said Hagan Freeman, president of Freeman Associates, an independent manufacturers representative for Krone. "Sorry to kill the fun for everyone on this one but the story here is pretty straightforward.
"Krone is now owned by a company that understands their markets, what they manufacture and sell and are interested in making the investment necessary to substantially grow the business."