Superior Essex Inc. has entered into a purchase agreement to acquire selected assets of Belden Inc.'s North America...
March 19, 2004
Superior Essex Inc. has entered into a purchase agreement to acquire selected assets of Belden Inc.’s North American communications wire and cable business.
Under the terms of the agreement, which is subject to regulatory approvals, the company will purchase selected inventories, machinery and equipment and will assume customer contracts related to Belden’s North American outside plant communications wire and cable business.
The total purchase price is not expected to exceed US$95 million.
The proposed acquisition excludes Belden’s communications wire and cable operations in the United Kingdom, real estate located at Belden’s Phoenix, Arizona and Fort Mill, S.C. facilities, and accounts receivable.
“This acquisition will more appropriately align capacity in the outside plant copper communications cable industry with demand, which has declined 50% in North America since 2000,” said Stephen Carter, CEO of Superior Essex.
"We are confident that we will be able to smoothly transition Belden’s customer base, which last year generated approximately $200 million in revenues, and meet their ongoing needs without disruption."
The company also announced plans to refinance its US$145 million of existing senior notes and finance the Belden acquisition with a new senior unsecured note offering.