General Cable puts itself up for sale
The company’s chairman said he expects the cable industry to consolidate.
On July 16, General Cable announced that its board of directors “has initiated a review of strategic alternatives to maximize shareholder value, including a potential sale of the company.” It said it has engaged J.P. Morgan Securities LLC as financial advisor.
The company’s non-executive chairman, John E. Welsh III, commented, “While the management team has made excellent progress in the execution of our strategic roadmap to transform the company into a more focused, efficient and innovative organization, we expect the industry to consolidate over time and believe the review at this time is in the best interests of shareholders.”
Michael T. McDonnell, General Cable's president and chief executive officer, added, “I am proud of the efforts of our people to transform our business over the last two years, including rationalizing the asset base and refocusing on core businesses, streamlining our supply chain, and accelerating profitable growth in key segments. While we are benefiting from these significant operational and financial-performance improvements, current dynamics in our industry are masking those accomplishments, and we expect that trend to continue through the second half of 2017 and into 2018. As the board conducts its review, we remain committed to executing our plan, to competing and to continuing to deliver innovative wire and cable solutions that exceed customer expectations.”
The company stated there is no assurance that the review will result in a sale, adding that it “does not intend to disclose or comment on developments related to its review unless and until the board has approved a specific transaction or otherwise determined that further disclosure is appropriate.”
When we know any more, we will report on it.