As in reported BusinessWeek and The Wall Street Journal, electronics components maker Belden said Thursday it agreed to buy Thomas & Betts Corp.'s communications products business for $78 million in cash.
Memphis, Tenn.-based Thomas & Betts said the communications products business is part of its electric segment. It includes coaxial cable drop connectors, pole line hardware and other products. It generated about 9 cents of earnings per share and $45 million in revenue in the first nine months of this year.
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Belden said the Thomas & Betts products complement its existing audio, video and security cables. Belden said it expects the acquisition to close by the end of 2010 and add 5 cents per share to earnings in 2011.
Thomas & Betts' operations had $45 million of revenue the first nine months of 2010 and earnings of about nine cents a share. Company-wide results were $1.5 billion and $2, respectively. The business includes coaxial cable drop connectors and other hardware sold under brands like Snap-N-Seal and LRC.
"This was an opportune time to divest this nonstrategic business," said Thomas & Betts Chairman and Chief Executive Dominic Pileggi. "We continue to focus on our strategy of enhancing our core electrical-products portfolio and expanding our global market presence," as shown by acquisitions earlier this year, he said.
Belden, which makes cable and networking products, said the purchase will boost its presence in the broadband/cable television, security and audio/video markets.
The deal is set to close by year's end, and Belden anticipates the operation boosting its bottom line by about five cents a share next year. Analysts were expecting a profit of $2.15.
SOURCES:
Thomas & Betts To Sell Communications-Products Business To Belden (wsj)
Belden to acquire Thomas & Betts unit for $78M (BusinessWeek)