Southwire Signs Agreement to Acquire Competitor's Building Wire Business; Deal Will Make Southwire North America's Largest Producer of Building Wire

Sep 05, 2001, 01:00 ET from Southwire Company

    CARROLLTON, Ga., Sept. 5 /PRNewswire/ -- Southwire Company announced today
 it has signed an agreement to acquire General Cable Corporation's building
 wire assets, a move that would make Southwire North America's largest producer
 of building wire and strengthen its ability to serve customers in the
     Under the agreement, Southwire will acquire manufacturing facilities in
 Kingman, Ariz. and Watkinsville, Ga., both of which produce a variety of
 building wire products used in residential, commercial and industrial
 construction.  Southwire also will acquire manufacturing assets from General
 Cable's building wire plant in Plano, Texas.  The agreement is contingent upon
 applicable regulatory approval.
     "Southwire believes in the future of its core wire and cable markets and
 continues to invest whatever is necessary to lead these markets," said
 Southwire President Stuart Thorn.
     Being a family-owned business provides Southwire with a long-term vision,
 enabling it to see past cyclical peaks and valleys, according to Thorn.  That
 allows the company to take advantage of today's economic downturn by
 acquiring, for an attractive price, improved geographical coverage and
 operating economies of scale.
     "Most importantly, we are excited that this acquisition will help us grow
 yet closer to our customers," Thorn said.  "By adding new employees with
 enormous industry experience to our already great team, we will gain even more
 of what it takes to help our customers succeed.  In turn, our own company will
 grow even stronger and more secure."
     Expected to close later this year, the acquisition will significantly
 increase the size of Southwire's building wire business.  In addition, it will
 expand Southwire's presence in the western United States, allowing the company
 to better serve its regional and national customers.
     "Over the past 50 years, Southwire has established itself as a strong
 leader in the industry through providing quality products and services that
 meet or exceed the expectations of our customers," said Jack Carlson,
 president of Southwire's Electrical Division.  "With this expansion of our
 building wire business, we can better serve our customers and the growing
 demands of the market while, in turn, reinforcing our leadership position in
 the industry."
     As part of the transaction, General Cable will acquire assets of Cyber
 Technologies, Southwire's data communications cable business in Peachtree
 City, Ga.
     "This unique deal allows General Cable to increase its presence in the
 data cable market, while providing Southwire with a much-stronger platform
 from which to serve the wire and cable industry," said Lee Richards,
 Southwire's president of business development.  "It is really a matter of us
 each focusing on what we do best -- serving our core markets and customers."
     When it sold NSA, a primary aluminum smelter in Hawesville, Ky., earlier
 this year, Southwire pledged to invest in growth that would expand the
 company's presence as a leader in the wire and cable industry, Richards said.
     "With today's announcement, we are keeping that pledge," he said.  "We
 will continue to do so by exploring other growth opportunities in our core
 leadership areas:  electrical wiring for industrial, commercial, and home use;
 energy cable for utilities; and aluminum and copper rod for internal
 consumption, plus a variety of important OEM markets."
     Southwire is one of the world's leading wire and cable manufacturers and
 has been a technology leader in the industry for more than 50 years.
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SOURCE Southwire Company