said it completed the sale of all its North American magnet wire assets to
Rea Magnet Wire
Rea Magnet Wire purchased the assets in addition to 24 million pounds of copper inventory for $139 million. This figure includes a base purchase price of about $125 million and a working capital adjustment estimated at closing to be about $14 million.
The transaction involved the sale of Phelps Dodge's manufacturing operations in Fort Wayne, Ind., and Monterrey, Mexico.
Phelps Dodge estimates special, net after-tax charges of $16 million associated with this transaction, resulting mostly from employee-related costs and asset impairment charges. Of this amount, approximately $11 million was recognized in the 2005 fourth quarter.
Rea offered positions to 580 magnet wire employees in manufacturing operations at the Fort Wayne and Monterrey plants.
On Monday, Phelps Dodge fell $1.66 to $140.40.
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