HIGHLAND HEIGHTS, Ky. (AP) â¿¿ General Cable will spend $185 million in cash to acquire Alcan Cable, the wire and cable business of mining company Rio Tinto PLC.
Based on current metal prices, General Cable said it expects the addition of Alcan to boost its annual revenue by between $650 million and $700 million and increase value for shareholders in the near term. The company's shares rose more than 7 percent in midday trading.
Alcan produces aluminum cable for the utility and building industries. The company employs about 1,050 people and serves markets in the U.S., Canada, Mexico, and China, General Cable said.
Gregory Lampert, General Cable's president and chief executive for North America, said that the addition of Alcan's aluminum construction cable products will further expand the variety of products his company can offer distributors serving electrical and industrial contractors.
General Cable, based in Highland Heights, Ky., said it plans to use existing financing to fund the deal, which is expected to close in the second half of 2012.
Shares of General Cable Corp. rose $1.96 to $29.02 in midday trading.