General Cable Corporation (NYSE:BGC) announced today that it has agreed to acquire Norddeutsche Seekabelwerke GmbH & Co. KG (NSW), located in Nordenham, Germany from Corning Incorporated (NYSE:GLW). The transaction is expected to close Monday, April 30, 2007. NSW had revenues of approximately $120 million in 2006.
"With more than 100 years of experience, NSW has tremendous technical expertise offering complete solutions for submarine cable systems including the manufacturing, engineering, seabed mapping, project management, and installation for the offshore communications, energy exploration, transmission, distribution, and alternative energy markets," said Gregory B. Kenny, President and Chief Executive Officer of General Cable. NSW is a leading global supplier of offshore communications, power and control cables as well as aerial cables for power utility communication and control networks. NSW has been in operation since 1899 and is situated in an ideal location with a deep-sea pier capable of loading cable laying ships directly from their production facility on the North Sea in northern Germany. NSW has manufactured and installed submarine projects throughout the world, including one of the world's longest hybrid submarine communications cable systems extending 8,600 km linking 15 countries. Offshore cable demand is strengthening driven by offshore oil and gas exploration, renewable energy, as well as traditional power requirements to inter-coastal and island areas. Also, after many years of maintenance level spending by global telecommunications carriers for submarine fiber optic cable, network capacity utilization rates have begun to increase. With global demand for voice, video, and data increasing, telecommunications carriers are now looking to reinvest and add capacity in the global submarine network. "This acquisition brings the critical technology to allow us to fully address one of the fastest growing high value-added markets for energy, control and communication cables and systems, with an addressable market well in excess of $1 billion. We expect this acquisition to be modestly accretive in its first full year of operations," Kenny said.
NSW is also a market leader for a variety of specialty products including specialized high-end winding wire for high voltage motor applications and specialty extrusions for various filtration and waste water treatment applications.
"General Cable is very pleased to have the NSW team join our global organization. NSW's highly regarded technology platform and brand name combined with General Cable's vast array of complementary products, marketing and logistics strengths will provide a more complete solution which will be sold globally to these expanding markets," said Domingo Goenaga, President and Chief Executive Officer, General Cable Europe.
With nearly $3.7 billion of annual revenues and over 8,000 employees, General Cable is a global leader in the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for the energy, industrial, and communications markets. Visit our website at www.generalcable.com.
Certain statements in this press release, including without limitation, statements regarding future financial results and performance, plans and objectives, capital expenditures and the Company's or management's beliefs, expectations or opinions, are forward-looking statements. Actual results may differ materially from those statements as a result of factors, risks and uncertainties over which the Company has no control. Such factors are more fully discussed in the Company's Report on Form 10-K filed with the Securities and Exchange Commission on March 1, 2007, as well as any current and periodic reports filed with the Commission. The Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.