General Cable Corporation (NYSE:BGC) announced today that it has
agreed to acquire Norddeutsche Seekabelwerke GmbH & Co. KG (NSW),
located in Nordenham, Germany from Corning Incorporated (NYSE:GLW).
The transaction is expected to close Monday, April 30, 2007. NSW had
revenues of approximately $120 million in 2006.
"With more than 100 years of experience, NSW has tremendous
technical expertise offering complete solutions for submarine cable
systems including the manufacturing, engineering, seabed mapping,
project management, and installation for the offshore communications,
energy exploration, transmission, distribution, and alternative energy
markets," said Gregory B. Kenny, President and Chief Executive Officer
of General Cable. NSW is a leading global supplier of offshore
communications, power and control cables as well as aerial cables for
power utility communication and control networks. NSW has been in
operation since 1899 and is situated in an ideal location with a
deep-sea pier capable of loading cable laying ships directly from
their production facility on the North Sea in northern Germany. NSW
has manufactured and installed submarine projects throughout the
world, including one of the world's longest hybrid submarine
communications cable systems extending 8,600 km linking 15 countries.
Offshore cable demand is strengthening driven by offshore oil and gas
exploration, renewable energy, as well as traditional power
requirements to inter-coastal and island areas. Also, after many years
of maintenance level spending by global telecommunications carriers
for submarine fiber optic cable, network capacity utilization rates
have begun to increase. With global demand for voice, video, and data
increasing, telecommunications carriers are now looking to reinvest
and add capacity in the global submarine network. "This acquisition
brings the critical technology to allow us to fully address one of the
fastest growing high value-added markets for energy, control and
communication cables and systems, with an addressable market well in
excess of $1 billion. We expect this acquisition to be modestly
accretive in its first full year of operations," Kenny said.
NSW is also a market leader for a variety of specialty products
including specialized high-end winding wire for high voltage motor
applications and specialty extrusions for various filtration and waste
water treatment applications.
"General Cable is very pleased to have the NSW team join our
global organization. NSW's highly regarded technology platform and
brand name combined with General Cable's vast array of complementary
products, marketing and logistics strengths will provide a more
complete solution which will be sold globally to these expanding
markets," said Domingo Goenaga, President and Chief Executive Officer,
General Cable Europe.
With nearly $3.7 billion of annual revenues and over 8,000
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 factors are more fully
discussed in the Company's Report on Form 10-K filed with the
Securities and Exchange Commission on March 1, 2007, as well as any
current and periodic reports filed with the Commission. The Company
undertakes no obligation to release publicly the result of any
revisions to these forward-looking statements that may be made to
reflect events or circumstances after the date hereof or to reflect
the occurrence of unanticipated events.
