nkt cables to acquire Ericsson's power cable operations

Acquisition of Ericsson's power cable operations to strengthen nkt cables' position in the market for medium and low voltage cables in the Nordic region.

Today nkt cables has signed a conditional purchase agreement with Ericsson concerning an acquisition of Ericsson's power cable operations ("Energy Business"). The transaction is subject to relevant regulatory approval and is expected to be completed beginning of 3rd quarter 2013. The total consideration amounts to 250 mSEK, equivalent to approx. 220 mDKK (enterprise value).

Ericsson's Energy Business realised a revenue in market prices of approx. 1.3 bnDKK in 2012, and the company is a leading supplier of medium voltage products to the Nordic utility groups. In addition, Ericsson's Energy Business is an important supplier of low voltage products to the wholesalers and installers in Sweden, and a significant portion of revenue also comes from innovative specialty power cables.

The acquisition is a central element in the growth strategy for nkt cables' Products business unit, focusing on strengthening the company's position in the medium and low voltage cables segment in selected markets. The acquisition of Ericsson's power cable operations will add a number of unique products to nkt cables' portfolio, strengthen development competences for new and innovative power solutions, and improve scope for servicing Nordic customers.

nkt cables will gain approx. 320 employees and a factory in Falun, Sweden, which contains production facilities, a development department as well as sales and administration. The factory's location and product portfolio will be complementary to nkt cables' factory in Asnæs, Denmark, thereby creating a cost-efficient production and logistics set-up for servicing the Nordic market.

Source: nkt cables