Belden Enters Into Definitive Agreement To Divest Thermax And Raydex Businesses And Authorizes Up To $200 Million Of Additional Stock Repurchases
Belden Inc. (NYSE: BDC), a global leader in signal transmission
solutions for mission-critical applications, today announced it has
entered into a definitive agreement to sell its Thermax and Raydex cable
Belden Inc. (NYSE: BDC), a global leader in signal transmission solutions for mission-critical applications, today announced it has entered into a definitive agreement to sell its Thermax and Raydex cable businesses, serving the aerospace and defense industry, to Carlisle Companies Incorporated. Consideration will be approximately $265 million. The transaction is subject to customary closing conditions, including regulatory clearance, and is expected to close by December 31, 2012. “I’m pleased to announce this agreement with Carlisle. As evidenced by the value of the transaction and the performance of these businesses, they are tremendous assets that will be right at home with a great company. We believe this transaction is in the best interest of shareholders as we further transform our portfolio. Detailed financial information, including the expected impact to Belden’s 2013 results, will be provided at our investor day on December 11, 2012,” said John Stroup, Belden’s President and CEO. The Company also announced today that its board of directors approved a new share repurchase program that enables the Company to purchase up to $200 million of its common stock through open market purchases, negotiated transactions, or other means, in accordance with applicable securities laws and other restrictions. This program will be funded by cash on hand, proceeds from divestitures and free cash flow. Mr. Stroup added, “The Company’s strong balance sheet, liquidity position and ability to generate significant free cash flow provide Belden with the opportunity to purchase our equity at an attractive price.” Forward Looking StatementsStatements in this release other than historical facts are “forward looking statements” made in reliance upon the safe harbor of the Private Securities Litigation Reform Act of 1995. Forward looking statements include any statements regarding future revenues, costs and expenses, operating income, earnings per share, margins, cash flows, dividends, and capital expenditures. These forward looking statements are based on forecasts and projections about the markets and industries served by the Company and about general economic conditions. They reflect management's beliefs and expectations. They are not guarantees of future performance and they involve risk and uncertainty. The Company’s actual results may differ materially from these expectations. Changes in the global economy may impact the Company’s results. Turbulence in financial markets may increase the Company’s borrowing costs. Additional factors that may cause actual results to differ from the Company’s expectations include: the Company’s reliance on key distributors in marketing products; the Company’s ability to execute and realize the expected benefits from strategic initiatives (including revenue growth, cost control, and productivity improvement programs); changes in the level of economic activity in the Company’s major geographic markets; difficulties in realigning manufacturing capacity and capabilities among the Company’s global manufacturing facilities; the competitiveness of the global cable, connectivity and networking industries; variability in the Company’s quarterly and annual effective tax rates; changes in accounting rules and interpretation of these rules which may affect the Company’s reported earnings; changes in currency exchange rates and political and economic uncertainties in the countries where the Company conducts business; demand for the Company’s products; the cost and availability of materials including copper, plastic compounds derived from fossil fuels, electronic components, and other materials; energy costs; the Company’s ability to achieve acquisition performance expectations and to integrate acquired businesses successfully; the ability of the Company to develop and introduce new products; the Company having to recognize charges that would reduce income as a result of impairing goodwill and other intangible assets; security risks and the potential for business interruption from operating in volatile countries; disruptions or failures of the Company’s (or the Company’s suppliers or customers) systems or operations in the event of a major earthquake, weather event, cyber-attack, terrorist attack, or other catastrophic event that could cause delays in completing sales, providing services, or performing other mission-critical functions; and other factors. For a more complete discussion of risk factors, please see our Annual Report on Form 10-K for the year ended December 31, 2011, filed with the SEC on February 29, 2012. Belden disclaims any duty to update any forward looking statements as a result of new information, future developments, or otherwise. About BeldenSt. Louis-based Belden Inc. designs, manufactures, and markets cable, connectivity, and networking products in markets including industrial automation, enterprise, transportation, infrastructure, and consumer electronics. It has approximately 7,400 employees, and provides value for industrial automation, enterprise, education, healthcare, entertainment and broadcast, sound and security, transportation, infrastructure, consumer electronics and other industries. Belden has manufacturing capabilities in North America, South America, Europe, and Asia, and a market presence in nearly every region of the world. Belden was founded in 1902, and today is a leader with some of the strongest brands in the signal transmission industry. For more information, visit www.belden.com.