February 14, 2007 -- Belden has entered into a definitive agreement to purchase LTK Wiring Co. Ltd., a Hong Kong company, in an all-cash transaction for approximately $195 million. LTK Wiring, a subsidiary of LTK Industries Limited, is one of the largest manufacturers of electronic cable for the China market, with 2006 revenues of approximately $220 million.
"We are delighted to bring LTK Wiring, a company with an outstanding reputation for quality and innovation, into the Belden family," said John Stroup, CEO of Belden. "This acquisition propels us toward one of our stated objectives, expanding our presence in faster growing emerging markets. It adds another prestigious brand, LTK, to our portfolio, and better positions us to compete effectively in China. We are confident that LTK Wiring has the management depth and strong infrastructure to be a platform for Belden's growth throughout the region.
"LTK Wiring is a valued cable supplier to companies manufacturing consumer electronics, telecom equipment, white goods, automobiles and other OEM products in China," Stroup continued. "We are committed to sustaining LTK's leading market position and rapid growth. And with LTK's manufacturing expertise and capacity, we are now positioned to better serve Belden's Asia customers in networking, broadcasting, and industrial infrastructure."
Simon T.Y. Cua, managing director, LTK Industries Ltd., will continue as managing director of LTK Wiring during a transition period. Mr. Cua said: "Belden's product line and reputation are unsurpassed in our industry, and we are pleased to become part of such a fine company. This transaction demonstrates Belden's strong commitment to be a leader in the region."
Belden contends that LTK Wiring has a sales and service organization that is uniquely positioned to serve global customers who manufacture throughout the region. This organization includes sales offices in Japan, Taiwan, Korea, Singapore, and Thailand and an extensive sales and customer service team across China. Additionally LTK has three manufacturing plants in China -- in Huizhou, Shanghai and Dalian -- and employs about 2,000 associates.
The companies anticipate that the transaction will close in about 60 days. Belden expects that the transaction will be accretive to 2007 earnings.