Coleman Cable Agrees to $492 Million Takeover by Southwire

Electrical-wire producer Coleman Cable Inc. CCIX +7.89% agreed to be acquired by privately held Southwire Co. for $492 million to broaden both companies' positions in the wire-and-cable market.

Copper-wire manufacturer Southwire will offer Coleman holders $26.25 a share, a nearly 17% premium over the close on Oct. 29, the last trading day ahead of media reports about a possible sale. Including the assumption of debt, the deal is worth $786 million.

Coleman Cable has posted mixed earnings results over the past several quarters as it and other wire producers have been affected by declining copper prices.

By merging operations, the companies can boost the quality of their products and have a stronger platform to enhance innovation, Southwire Chief Executive Stuart Thorn said.

The deal is expected to close in the first quarter. Coleman's management team will join Southwire.

Southwire makes building, cable and cord products, along with industrial power cable and copper and aluminum rods.

2013/12/21 15:55:42 Source：online.wsj

online.wsj.com/news/articles/SB10001424052702304866904579270150996150852