HIGHLAND HEIGHTS, Ky. (Dec. 5, 2012) — General Cable Corp. announced Monday that it has completed its acquisition of Alcan Cable China, which represents approximately 10 percent to 15 percent of overall revenues of Alcan Cable.
“Alcan Cable China has a 430,000-s.f., vertically integrated manufacturing plant in Tianjin, China and 10 regional sales offices,” said Alex Tham, managing director of Alcan Cable China. “Since its start-up in 2007, the business has matured in a relatively short amount of time building a sales infrastructure and a premium brand with a strong reputation in the Chinese market, which represents nearly one-third of global wire and cable demand. We believe the synergies of this acquisition coupled with an established platform from which to introduce and grow other General Cable product lines further enhances the value proposition to our customers. We are honored and proud to become part of General Cable.”
Alcan Cable China is “highly complementary” to General Cable’s two long-standing partnerships in China, said Gregory B. Kenny, president and CEO of General Cable.
“We are off to a fast start executing on our integration plans in North America and expect to do the same with the business in China,” he said.
The company estimates that the overall Alcan Cable business will contribute approximately $650-$700 million in annual revenues at current aluminum prices, and over a cycle, the operating margin profile is expected to be consistent with the company’s existing businesses as manufacturing, logistics, and purchasing synergies are realized. The company expects Alcan Cable North America to contribute meaningfully in the fourth quarter of 2012 while Alcan Cable China’s contribution is expected to be de minimis to fourth quarter results as step-up purchase accounting adjustments offset the base earnings in the business in China.
General Cable (NYSE:BGC), a Fortune 500 Company, is a leader in the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for the energy, industrial, specialty, construction and communications markets. For more information, visit generalcable.com.