Southwire Invests in Canadian Market with Cable Tech Acquisition
Deal Includes Purchase of Manufacturing Facility in Stouffville, Ontario
(Carrollton, Georgia - April 3, 2006) -Southwire Company today completed its acquisition of Cable Tech's wire and cable assets. These assets include Cable Tech's plant in Stouffville, Ontario, which manufactures wire and cable products used in the residential, commercial construction and original equipment manufacturer (OEM) markets.
Last year, Southwire announced it would invest an additional $250 million in new facilities and equipment. This Cable Tech acquisition is part of that plan, further demonstrating Southwire's commitment to the Canadian and North American wire and cable markets. Along with future organic investments, this acquisition provides an important manufacturing presence in Canada, while enhancing Southwire's product offerings. It also builds on Southwire's industry leadership in fill rates and lead times.
"Today's announcement will further extend Southwire's position in Canada, and it is continuing evidence of our commitment to remaining leaders in North American wire and cable power delivery products," said Southwire President and CEO Stu Thorn.
"The Cable Tech acquisition helps better position Southwire for long-term growth with all our North American partners and gets us closer to those in Canada," Thorn added.
"This latest stake in the ground shows our customers just how committed we are to the Canadian market. At Southwire, we plan for the next generation - and we firmly believe that growing along side our Canadian customers will create long-term value."
"In addition, Southwire's acquisition of the Canadian Cable Tech business further strengthens our product offering and customer service capabilities in the North American OEM Market - a key growth area for Southwire Company," Thorn said.
The Stouffville manufacturing facility will be supported by Southwire's existing supply chain infrastructure. In addition, other Southwire manufacturing facilities will provide the Canadian market with products not manufactured in Stouffville.
"It's very important that Southwire continues to get closer to its customers in Canada and remain sensitive to their regional needs," said Eric Schmidt, senior vice president of Southwire's Canadian Electrical Division. "Exceeding our customers' expectations has been a key to our success. We must continually focus on what they think is important and will truly deliver value. Our customers expect to grow and we must grow with them by offering a compelling competitive advantage in the marketplace."
"This acquisition is yet another example of Southwire's commitment to the Canadian market and to customers who want innovative, high-quality products with superior service capabilities from the industry's lowest cost provider," added Schmidt.
Located just north of Toronto, Ontario, the Stouffville facility has a strong workforce and easy access to major transportation routes. Southwire plans strategic capital investments that will bring the Stouffville facility to higher manufacturing standards and optimization, including the installation of new, state-of-the-art equipment.
About Southwire Company
A technology leader, Southwire Company is a major wire and cable provider in North America, manufacturing building wire and cable, metal-clad (MC) cable, cord products, utility cable products, industrial power cable, copper and aluminum rod and continuous casting technology. Please visit Southwire's website at mysouthwire.com.
Southwire Company
One Southwire Drive Kelly Killian
Carrollton, Georgia 30119 Eric Mower and Associates
(770) 832-4242 678-443-5612
www.southwire.com kkillian@mower.com
