CARROLLTON, Ga. and WAUKEGAN, Ill., Dec. 20, 2013 /PRNewswire/ -- Southwire Company ("Southwire") and Coleman Cable, Inc. (NASDAQ: CCIX) ("Coleman") today announced that the companies have entered into a definitive merger agreement under which Southwire will acquire Coleman for $26.25 per share in cash. The transaction, which values Coleman at approximately $786 million, including the assumption of $294 million in net debt, was unanimously approved by the Coleman board of directors. The parties currently anticipate the transaction will close in the first quarter of 2014. The $26.25 per share in cash represents a premium of approximately 16.6 percent to the closing share price on October 29, 2013, the last trading day prior to media reports about a potential transaction, and a premium of 29.6 percent over the volume weighted average closing price of Coleman's common stock for the 90 days ending October 29, 2013. "The combination of Southwire and Coleman will create one of the wire and cable industry's preeminent companies with the ability to provide world-class service to its customers through a more robust and higher-quality offering of products and services, operational excellence and a stronger platform for enhanced product innovation," said Stuart Thorn, president and chief executive officer of Southwire. "Coleman's exceptional engineering capabilities across multiple end markets and stellar reputation among customers make it an ideal fit with Southwire. Our shared focus on technology and innovation will allow us to better serve our respective customers, while also saving them time and money. Southwire's outstanding team of motivated, loyal and experienced people is one of our greatest strengths, and we look forward to welcoming the talented and dedicated Coleman team to the Southwire family, where together we will achieve new levels of growth, innovation and service." "We are pleased to announce this transaction, which delivers immediate and certain cash value to our stockholders and supports a strong future for Coleman," said Gary Yetman, president and chief executive officer of Coleman. "By partnering with Southwire, Coleman will benefit from Southwire's extraordinary track record of operational success as we continue to execute on our mission of expanding product offerings and sales and exceeding the expectations of our diverse and growing customer base. As one of North America's largest producers of wire and cable, Southwire is a proven industry leader and together we will continue building on the solid momentum our team worked so hard to create." Until the merger is complete, both Southwire and Coleman will continue to operate as separate companies. Following the transaction's closing, Coleman's management team will join the Southwire organization, and Southwire expects to maintain a significant presence in Waukegan.
Shares of Coleman Cable (Nasdaq:CCIX) were gapping down Tuesday morning with an open price 11.6% lower than Monday's closing price. The stock closed at $12.98 yesterday and opened today's trading at $11.47.