RF Industries acquires network cable, assembly manufacturer Comnet Telecom Supply
Comnet is a Corning CAH Connections Gold program member, and also provides copper network cable along with data center equipment.
RF Industries completed its acquisition of Comnet Telecom Supply, a New Brunswick, NJ-based supplier of telecommunications and data products, for a total purchase price of $4.15 million on January 21. The two companies originally signed an acquisition term sheet in November 2014. In a release announcing the acquisition, RF Industries explained the price included $3,050,000 in cash and 252,381 shares of RFI’s common stock. Comnet is privately owned and, according to RF Industries, had revenues of approximately $9.6 million for the 12-month period that ended October 31, 2014.
Comnet manufactures network cable products including copper and fiber-optic assemblies. The company is a Corning CAH—Cable Assembly House—Gold Program member. RF Industries chief executive officer Howard Hill commented, “This acquisition expands our fiber-optic cabling capabilities and customer base to include large national manufacturers of and distributors of telecommunications equipment and products. Comnet, like Cables Unlimited, is a Corning Cable System CAH Connections Gold Program member, a limited group of companies in the United States permitted to manufacture fiber-optic cable assemblies backed by Corning’s extended warranty.” RF Industries acquired Cables Unlimited in 2011.
“Not only does this acquisition reduce the company’s dependence on sales at our other major divisions, it provides a growth opportunity for our current fiber-optic and custom cabling product lines,” Hill continued. “We anticipate that Comnet’s growing sales will be accretive to the company’s profitability and cash flow, after one-time expenses related to the integration of the business.”
As a distributor, Comnet has a linecard that includes CommScope, OCC, OFS, Corning, TE Connectivity, General Cable, Hitachi, AFL, Comtran, Draka, Superior Essex, Quabbin, Panduit, 3M, Wiremold, HellermannTyton and several others. According to Comnet’s website, it provides racks and cabinets, fiber and copper cable, outside-plant equipment, connectors, jacks, panels, innerduct, raceway, cable tray, test equipment, aisle-containment systems, computer-room air-conditioning and power-distribution units.
Comnet is privately owned by Robert Portera, who agreed to a two-year employment contract with RF Industries as part of the acquisition.