General Cable Corporation Completes the Acquisition of Prestolite Wire
4 Tesseneer Dr.
Highland Heights, KY, 41076
Press release date: November 5, 2012
HIGHLAND HEIGHTS, KENTUCKY - General Cable Corporation (NYSE: BGC), the "Company," announced today that it has completed the acquisition of Prestolite Wire LLC (Prestolite). A well-established, privately-owned manufacturer, Prestolite, through its two manufacturing facilities in the United States and Mexico, offers a broad range of wire and cable products and harnesses serving predominately transportation Original Equipment Manufacturers (OEMs), Tier One Suppliers, and OEM distribution customers. Prestolite's products offer a wide variety of flexibility, abrasion resistance and environmental friendly performance, as well as set the industry standard with regard to high temperature insulation applications. In 2011, Prestolite reported revenues of $170 million and is expected to be accretive in the first full year of operation.
"Prestolite has built a strong brand and a broad base of long-standing customers through its reputation as a manufacturer of superior quality products and innovation, with a sharp focus on high temperature and abrasion- and corrosion-resistant applications," said Roger Roundhouse, Senior Vice President and General Manager, Transportation Wire & Assemblies, General Cable. "This acquisition is highly complementary to our existing transportation related businesses as approximately 90% of Prestolite's revenues are generated from products that are incremental to the Company's existing product portfolio. We are excited about the growth opportunities that will be afforded to us as a result of this acquisition through new products as well as through greater access to the growing and evolving automotive segment of the wire and cable industry."
"In addition to growth trends forecasted for new vehicles over the next couple of years, vehicle designs are rapidly evolving due to demands for greater fuel efficiency and enhanced communication capabilities," added Craig Horton, Product Manager, Automotive, General Cable. "OEMs are implementing alternative materials, resulting in higher operating temperatures, electric or hybrid propulsion technologies, enhanced communication systems and interconnectivity of vehicle management systems. As a result, the complexity and volume of wire and cable products consumed in vehicle designs is expected to continue to increase."
"Speaking for the associates at Prestolite Wire, I can say we are very happy to join the General Cable team," said Greg Ulewicz, President of Prestolite Wire, who will remain with General Cable and continue to run the Prestolite Wire business. "The combination of General Cable's broader capabilities and geographic reach coupled with Prestolite's product offering and access to markets in the transportation related industry makes synergistic sense and presents significant future opportunities for our combined business. The Prestolite Team is pleased that we have been acquired by a strategic buyer, but for that company to be General Cable-a company that really knows our business-gives me the confidence to tell all Prestolite associates that our future looks very bright."
"We welcome all Prestolite Wire associates to General Cable and we look forward to sharing best practices in safety, manufacturing, technology, sourcing and logistics. In the areas of marketing and sales, together we will strengthen our market strategies for both new and existing specialty industrial OEM and distribution customers and gain access to new markets for growth opportunities with new customers," concluded Roundhouse.
General Cable (NYSE:BGC), a Fortune 500 Company, 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, specialty, construction and communications markets. For more information about General Cable products, please contact your local sales representative or visit our Web site at www.generalcable.com.