Southwire Signs Agreement to Acquire Competitor's Building Wire Business; Deal Will Make Southwire North America's Largest Producer of Building Wire
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 industry. 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. MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X23281434
SOURCE Southwire Company
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