Wire Manufacturer Coleman Cable Explores Sale

Coleman Cable Inc, a manufacturer of electrical and electronic wire and cable products, is exploring a sale of the company, according to people familiar with the matter.

Coleman is in early-stage discussions with potential buyers before sending out detailed financial information in the next several weeks, the sources said on Wednesday, asking not to be identified because the matter is confidential.

The Waukegan, Illinois-based company has about $90 million in annual earnings before interest, taxes, depreciation and amortization and may be valued at about 8.5 times EBITDA in a potential sale, or more than $750 million, two of the sources said.

Shares of Coleman surged 10 percent to $24.75 in mid-day Nasdaq trading, giving the company a market capitalization of more than $450 million.

Investment bank Jefferies is advising Coleman on the sale process, which is expected to draw interest mainly from larger cable and wire manufacturers, the sources said.

source wireworld