General Cable acquiring part of Draka Holding's Comteq business in North America
Dec. 1, 2004 - Company plans to buy Comteq's copper cable business.
General Cable is acquiring the copper manufacturing portion of Draka Holding's Comteq business in North America.
General Cable plans to continue operations at Comteq's www.drakaholding.com
location in Franklin, MA, where optical fiber and copper cable are manufactured.
"The acquisition should significantly expand our position and capabilities in a number of high value added product areas," says Greg Lampert, General Cable's vice president and general manager of Carol Brand Products.
"The assets will also support the high-end data cable growth we expect as a result of our recently announced alliance with Panduit Corp.," adds Jim Barney, General Cable's senior vice president and general manager of communications.
General Cable says it is making the purchase because Comteq's Franklin, MA operation has strong technical and manufacturing capabilities in electronic cables, as well as high-end data products. Through the agreement, General Cable will obtain Comteq's well-known brands Helix and Hi-Temp.
The sale completion is scheduled for the first quarter of this year. The acquisition price for the manufacturing equipment and intellectual property will be in the range of $5 to $10 million, and is expected to bring annual productive capacity of approximately $35 to $40 million.
The move is a significant one for General Cable, a maker of copper, aluminum and optical fiber wire and cable products for the energy, industrial, specialty and communications markets.
The announcement comes roughly a month after General Cable announced other alliance plans. In November, General Cable announced a new alliance with connectivity manufacturer Panduit (Tinley Park, IL, www.panduit.com). This move led to the introduction of the end-to-end PanGen Structured Cabling Solutions.
General Cable is based in Highland Heights, KY. For more information visit