Management for the companies says that the Coleman Cable-Copperfield combination will result in one of the premier U.S. based manufacturers of electrical and electronic wire and cable products.
Copperfield, currently majority owned by Spell Capital Partners, is among the largest private fabricators and insulators of copper electrical wire and cable in the U.S. Copperfield sells its wire and cable products to industrial distributors and OEMs which operate in a diversified set of end markets including electrical, recreational vehicle, transportation, appliance and welding cable sectors.
Copperfield estimates that its revenues and EBITDA for the twelve months ended December 31, 2006 will be approximately $520 million and $35.3 million, respectively. The strategic acquisition of Copperfield is intended to broaden the scope of Coleman Cable's product offering, while further strengthening its strategic relationships with industrial distributors, and increasing Coleman's end-market diversity.
Coleman Cable anticipates meaningful expense synergies from the realignment of the combined company's manufacturing footprint and the expected purchasing opportunities resulting from the combination. Excluding expense synergies, Coleman Cable expects the acquisition of Copperfield to be accretive to earnings per share for 2007. Coleman Cable intends to use debt financing to consummate the acquisition. The transaction, which is subject to customary closing conditions and approval by necessary regulatory authorities, is expected to be completed during the second quarter of 2007.
"Copperfield is an excellent strategic fit and a logical step in the continued growth and development of our business," says Gary Yetman, CEO of Coleman Cable. "This transaction represents a unique opportunity to acquire a preeminent industry player and seasoned management team that will significantly enhance Coleman Cable's position as a leading provider of wire and cable products in numerous niche industrial end markets."
"The entire Copperfield family welcomes the opportunity to join forces with Coleman Cable," adds Richard Carr, Copperfield's CEO. "Our new platform will enhance the value proposition of both organizations and provide our diverse customer base with an even greater variety of products and services. Mike Frigo, Copperfield's COO, and I look forward to continuing our roles with the new company and being part of this exciting transaction."
Coleman Cable plans to have a conference call with its investors to discuss the Copperfield acquisition in early April, shortly after the closing.
Wachovia Capital Markets, LLC is serving as Coleman Cable's financial advisor for the acquisition. William Blair has provided a fairness opinion. Mayer, Brown, Rowe & Maw, LLP, is acting as the company's legal advisor. Lincoln International LLC is serving as Copperfield's exclusive financial advisor and Fredrikson & Byron, P.A. is acting as legal advisor to Copperfield and to Spell Capital Partners.