General Cable Corporation (NYSE: BGC), one of the most globally diversified industrial companies, announced today that it has agreed to acquire a majority interest (60%) in Procables S.A (Procables) for total consideration of $45 million, subject to typical adjustments for net working capital and net indebtedness levels. The transaction is expected to close in the second half of 2012, subject to receipt of regulatory approval. The Sredni Group will maintain a 40% interest in the business.
A well-established, privately owned manufacturer, Procables through its two manufacturing facilities in Bogota and Barranquilla offers a broad range of wire and cable products, including low and medium voltage power cables, building wire, industrial, communications, and bare aluminum conductors as well as operating copper and aluminum rod mills. In 2011, Procables reported revenues of $120 million USD and is expected to be accretive in the first full year of operation.
"We are pleased to be partnering with the Sredni Group, a local privately held conglomerate with over 50 years of experience in the Colombian industrial sector,” said Mathias F. Sandoval, President and Chief Executive Office, General Cable Rest of World. “This transaction enables us to partner with a well-established company with a strong regional commercial strategy and extensive distribution network while at the same time applying General Cable’s technical and operational expertise as we further expand the product portfolio and the value proposition to customers throughout the Andean Region."
Gregory B. Kenny, President and Chief Executive Officer of General Cable, said, “This transaction greatly enhances our presence in this strategically important market in the Andean Region further solidifying our geographic coverage throughout the Americas which is one of the most extensive in the wire and cable industry. With a population of 46 million and one of the largest economies in Latin America, Colombia represents a meaningful opportunity for growth. The Colombian economy is expected to continue to expand led by ongoing investments in housing and electrical infrastructure as well as developments in the oil and mining sectors all of which we expect will drive greater demand for wire and cable.”