General Cable completes acquisition of Alcan Cable’s North American business
By Anthony Capkun
September 4, 2012 – General Cable Corp. has completed the acquisition of the North American portion of Alcan Cable for $151 million that, according to General, represents about 85% to 90% of overall revenues of Alcan Cable. The company expects to complete the acquisition of the business operating in China for $34 million in a separate and subsequent closing before the end of 2012.
“We welcome Alcan Cable associates to General Cable and look forward to immediately sharing best practices as we realize manufacturing, logistics and purchasing synergies created by this acquisition,” said Gregory J. Lampert, president and CEO, General Cable North America. “Expanding our product portfolio through an enhanced aluminum-based cable offering further strengthens the value proposition to our electrical distributors and utility customers alike. The addition of aluminum rod and strip manufacturing provides vertical integration benefits as well as a new segment of valued OEM customers.”
General Cable says it estimates the overall Alcan Cable business will contribute about $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 North American businesses.