General Cable Corp. – a provider of fiber-optic wire and cable for the energy, utility and industrial industries – says it has agreed to acquire Alcan Cable, the wire and cable business of Rio Tinto PLC.
The purchase price is $185 million in cash, subject to customary adjustments primarily related to working-capital levels at closing as provided in the definitive purchase agreement. General Cable expects to use its asset-based revolving credit facility to principally fund the transaction.
The transaction is expected to close in the second half of the year, subject to receipt of regulatory approval.
"The addition of aluminum construction cables further expands the range of products we offer to distributors serving electrical and industrial contractors, and increases our capacity to efficiently serve our electric utility customers with transmission and distribution products," notes Gregory J. Lampert, president and CEO of General Cable North America.
Alcan Cable employs approximately 1,050 associates in its aluminum cable manufacturing and distribution facilities serving the energy and construction markets in the U.S., Canada, Mexico and China.