Nexans announced on July 17 it has agreed to sell U.S.-based cable manufacturer Berk-Tek to Leviton for U.S.$202 million. Nexans said that price “represents approximately a multiple of 10x over 2019 standalone EBITDA,” adding that Berk-Tek reported sales of U.S.$163 million in 2019.
“Our Berk-Tek colleagues will join a long-term partner with the best strategic fit to answer customers’ demand around connectivity,” said Nexans chief executive officer Christopher Guerin. “Together with Leviton, the Berk-Tek team will focus on developing innovative local area network solutions that are critically important in managing the demand of today’s emerging technologies.”
Daryoush Larizadeh, Leviton’s president, added, “Berk-Tek is a highly respected North American cabling company with exceptional manufacturing and product-development capabilities. By adding Berk-Tek to the Leviton family, we will be able to provide truly end-to-end solutions to our customers.”
Leviton and Berk-Tek formed a marketing alliance in 2013.
Nexans said it expects Berk-Tek’s 350 employees and its facilities in Pennsylvania and North Carolina to move under Leviton ownership before the end of 2020’s third quarter, subject to customary conditions.