* Deal for $185 mln
* Alcan to add $650-$700 mln revenue
May 21 General Cable Corp said it plans
to buy Alcan Cable, the wire and cable business of Rio Tinto Plc
, for $185 million in cash.
The company, which makes copper, aluminum and fiber optic
wire and cable products, said it expects Alcan to contribute
about $650 million to $700 million in annual revenue at current
Alcan makes aluminum cable for the utility and building
industries. It reported operating margins in the low single
digit range for 2011.
"With these synergies, an improving North American market
and an accelerating greenfield operation in China, the
transaction is expected to create shareholder value in the near
term," General Cable said in a statement.
The acquisition will expand General Cable's offering to
electrical and industrial contractors, the company said.
General Cable said it expects to use its asset-based
revolving credit facility to fund the transaction.
The deal is expected to close in the second half of 2012,
subject to regulatory approval.
Shares of General Cable closed at $27.06 on Friday on the
New York Stock Exchange.