Anglo-Australian mining giant Rio Tinto agreed to sell its wire and cable business to General Cable Corp for $185 million in cash.
London-based Rio Tinto will sell Alcan Cable, which has five manufacturing operations, a distribution centre and a dedicated technology development centre in North America and an operation in Tianjin, China.
Atlanta-based Alcan Cable produces aluminum cable for the utility and building industries in the US, Canada, Mexico, and China. It offers a wide range of bare and insulated conductors to both the utility and distribution markets.
General Cable said that according to its estimates, the acquisition will contribute around $650-700 million in revenues at current metal prices. Over a cycle, Alcan Cable's operating margin profile is expected to be consistent with its existing North American businesses as manufacturing, logistics, and purchasing synergies.
''I have long admired Alcan Cable and their singular and long standing focus on being superb at their craft. Alcan Cable's Stabiloy and Nual brand names are the gold standard for quality, packaging, and service in the North American aluminum cable industry. In addition, they are highly skilled in aluminum rod manufacturing and have built a state of the art facility in China that is successfully penetrating the domestic construction cable market, said Gregory Kenny, president and CEO of General Cable.
Alcan Cable China has a 430,000 square foot, vertically integrated manufacturing plant in Tianjin, China and eight regional sales offices.
Anglo-Australian mining giant Rio Tinto agreed to sell its wire and cable business to General Cable Corp for $185 million in cash.
