General Cable Corporation Completes the Acquisition of the North American Business of Alcan Cable
HIGHLAND HEIGHTS, KENTUCKY - General Cable Corporation (NYSE: BGC) (the
Company) announced today that it has completed the acquisition of the North American portion of Alcan Cable for
$151 million, subject to customary adjustments primarily related to working capital levels at closing. The North
American portion of Alcan Cable represents approximately 85% to 90% of overall revenues of Alcan Cable. As
anticipated in the purchase agreement, the Company expects to complete the acquisition of the business operating in
China for $34 million in a separate and subsequent closing before the end of 2012, subject to receipt of regulatory
approval and customary closing adjustments. The Company estimates that the overall Alcan Cable business will
contribute approximately $650-$700 million in annual revenues at current aluminum prices, and over a cycle, the
operating margin profile is expected to be consistent with the Company's existing North American businesses. The
Company expects the acquisition to be accretive on a full year basis and will provide a more detailed view of the
expected contribution to 2012 including the impact on the third and fourth quarters in conjunction with its third quarter
earnings release in late October.
"We welcome Alcan Cable associates to General Cable and look forward to immediately sharing best practices as we
realize manufacturing, logistics, and purchasing synergies created by this acquisition. Expanding our product portfolio
through an enhanced aluminum-based cable offering further strengthens the value proposition to our electrical
distributors and utility customers alike. The addition of aluminum rod and strip manufacturing provides vertical
integration benefits as well as a new segment of valued OEM customers," said Gregory J. Lampert, President and
Chief Executive Officer, General Cable North America.
The acquisition will be funded utilizing the Company's recently amended and enlarged asset-based revolving credit
facility and cash on hand. In addition to funding the acquisition of Alcan Cable, the amended credit facility supports
the Company's existing global operations while at the same time providing continuing flexibility to address other
elements of the capital structure, subject to meeting minimum availability and fixed charge coverage requirements. In
accordance with the recent amendment, the credit facility increased to $700 million with the closing of the North
American portion of Alcan Cable.
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.
Alcan Cable, the wire and cable business of Rio Tinto plc (LSE: RIO), a 100-year-old leader in the production of aluminum
cable for the utility and building industries, offers a wide range of bare and insulated conductors to both the utility and
distribution markets, supporting them with highly capable resources to ensure the highest value application of our products. For
more information about Alcan Cable, please visit the Company's Web site at www.alcancable.com.
