General Cable Corp. of Northern Kentucky agrees to be acquired in a $ 3B deal



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CINCINNATI – One of the largest public companies in the region agreed to be acquired in a transaction valued at $ 3 billion.

General Cable Corp., a cable and wire manufacturer that began to explore a sale in July, announced a definitive merger agreement on Monday with Prysmian SpA, the world's largest cable maker.

The impact of local employment was not immediately clear.

Based in Highland Heights, KY, General Cable has 10,000 employees in 16 countries and moved to Cincinnati in the 1980s when Cincinnati financier Carl Lindner Jr. purchased the company as part of a larger acquisition of Penn Central Corp.

General Cable has been battling high debt burdens and a bribery scandal that led to an $ 82 million deal with the Department of Justice 2016. It began selling international subsidiaries in 2014 and fought against shareholder demands during most of this year.

Prysmian seeks to expand its operations in Europe and South America by paying $ 30 per share in cash for General Cable, which is 37 percent higher than the closing price on Friday for the company. The combined companies will have sales of approximately $ 9 billion with 30,000 employees.

"This combination is an ideal strategic fit," General Cable CEO Michael McDonnell said in a press release. "Together, we will be able to deliver a strong portfolio of products and services and new product innovations throughout the wire and cable industry worldwide."

Prysmian executives told investors on Monday that they expect to harvest more than $ 220 million in annual cost savings from the merger, including $ 47 million in refinancing General Cable's debt and $ 177 million in purchases, general reductions and operational improvements in their factories.

                

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