General Cable Acquires Chinese Specialty Cable Facility
HIGHLAND HEIGHTS, Ky.--(BUSINESS WIRE)--Feb. 16, 2007--General Cable Corporation (NYSE:BGC) announced today that it has completed the acquisition of Jiangyin Huaming Specialty Cable Co. Ltd., a Chinese manufacturer of specialty automotive and industrial cable products, based in Jiangsu province. The new company, General Cable (Jiangyin) Co. Ltd., with revenues of approximately $12 million, employs approximately 200 associates. Over the next three years, General Cable plans to invest additional capital and introduce technology and manufacturing expertise to improve the utilization of the acquired assets and expand the new Company's product portfolio, profitability and revenue base. Revenue growth is expected to come primarily from the fast growing domestic Chinese market as well as export opportunities to customers in the wider Asia Pacific region. The Company expects to use a small amount of proceeds from its recent convertible debt offering to fund both the initial purchase price and any required short-term capital investments.
"Our Asia Pacific management team has been working diligently to identify the right assets to enter the Chinese market," said Campbell Whyte, President and Chief Executive Officer, General Cable Asia Pacific. "With this platform and experienced General Cable management resources led by Xubing Xia, General Cable's China Country Manager, we expect to expand production capabilities and capacity in the Company's served markets as well as diversify its product offering to include transportation, mining and nuclear generation cables for the Chinese market," Whyte concluded.
Gregory B. Kenny, President and Chief Executive Officer of General Cable added, "This transaction represents a small first step in implementing the Company's strategy to capitalize on growth opportunities in Asia. Earlier, we established sales offices in China and India to facilitate exports of specialized cables into those countries. We continue to patiently evaluate additional investment opportunities in those countries, as well as globally, aimed at energy and infrastructure cabling and systems."
With nearly $3.7 billion of annual revenues and 7,900 employees, General Cable is a global leader in the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for the energy, industrial, and communications markets. Visit our website at www.generalcable.com.
Certain statements in this press release, including without limitation, statements regarding future financial results and performance, plans and objectives, capital expenditures and the Company's or management's beliefs, expectations or opinions, are forward-looking statements. Actual results may differ materially from those statements as a result of factors, risks and uncertainties over which the Company has no control. Such risk factors are more fully discussed in the Company's Report on Form 10-K/A filed with the Securities and Exchange Commission on November 8, 2006, as well as periodic reports filed with the Commission.
General Cable Corporation
Michael P. Dickerson, Vice President of Finance and Investor Relations,