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.
