General Cable Corporation announced a definitive agreement to sell its Asia Pacific operations to MM Logistics Co., Ltd. for cash consideration of approximately $205 million. This transaction includes preliminary estimated net cash of $30 million available at the closing of the purchased businesses and is subject to customary working capital adjustments at the respective closing dates.
General Cable’s Asia Pacific operations consist of businesses in Thailand, China, New Zealand and Australia. The Company expects to close the sale of the operations in the third quarter, subject to customary closing conditions. Proceeds of the sale are expected to be used to reduce outstanding borrowings and pay related fees and expenses.
John E. Welsh, III, Chairman of the Board of General Cable, mentioned in a statement, “We are pleased with the continued execution and positive momentum we have achieved in our divestiture program that we originally announced last October.” He also said, “This agreement to sell our Asia Pacific operations represents another significant step to simplifying our geographic portfolio and reducing organizational complexity. We remain focused on the divestiture process for our businesses in Africa which are advancing according to plan. We are also optimizing our business, reducing costs and driving efficiencies in our core markets in North America, Latin America and Europe as we continue to execute our restructuring program.”
Brian J. Robinson, Executive Vice President and Chief Financial Officer said, “We previously completed the sale of our interests in Phelps Dodge International Philippines, Inc., Keystone Electric Wire and Cable (China), and Dominion Wire and Cables (Fiji) which together represented approximately $88 million of cash proceeds. Upon completion of the sale of our operations in Thailand, China, New Zealand and Australia for an estimated $205 million of cash consideration, the Company will have generated approximately $293 million of cash proceeds from its divestiture program which is consistent with our previously communicated expectations.”
HSBC is the financial adviser to General Cable on the sale of its Asia Pacific operations (which includes China, Thailand, Australia and New Zealand). Credit Agricole Corporate and Investment Bank acted as co-financial adviser on the sale of General Cable’s operations in China.
About General Cable
General Cable is a company based in Highland Heights, Kentucky. It has offices and manufacturing facilities in several countries, that manufactures and distributes copper, aluminum, and optical fiber cables used for energy, communications, and other industries. General Cable was incorporated in New Jersey in 1927, merging several older companies founded in the 19th century, including Phillips Wire and Safety Cable Company, Rome Wire Company, and Standard Underground Cable. In 2013, General Cable was ranked by Fortune Magazine as the 425th largest U.S. public company with $6,014.3 million in revenue
General Cable produces copper, aluminum, and fiber optic wire and cable products for the energy, construction, industrial, specialty and communications markets. The company’s energy cables include low-, medium- and high-voltage power distribution and power transmission products. General Cable’s application-specific industrial and specialty cables are used in electrical power generation — traditional and renewable — the oil, gas and petrochemical industries; mining; industrial automation; automotive, marine, and transit; and military, aerospace and OEM applications. General Cable sells its products under several brands including Anaconda; GenSPEED; BICC; Brand Rex; Carol; Gepco; NextGen; NSW; PDIC; Phelps Dodge International Corporation; and Silec. General Cable stock market revolution http://www.marketwatch.com/investing/stock/bgc
About John E. Welsh III
Mr. John E. Welsh III is Chairman of the Board for General Cable Corp. since 2001. He is also the President of Avalon Capital Partners, LLC and Managing Director of CIP Management LLC. He received a BS in Economics and Finance from Lehigh University and an MBA in Finance from the Wharton School of Business, University of Pennsylvania.
About MM Logistics
MM Logistics’ mission is to provide real added value for its principals, customers and employees, MM Logistics & MML Transport concentrates on premium quality of services in the specific sector of logistic support in the oilfield business. MM Logistics & MML Transport believes strongly in the concept of global cooperation and in educating and stimulating Thai nationals to take part in this process and to give them the opportunity to equal, grow and prosper.
MM Logistics is one of MMSVS Group company. It was established in 1999. And most of its employee used to provide Customs Clearance and Transport Contract to support PTTEP Bongkot Operations from 1990 to mid-1998. MM Logistics was ISO9001:2000 certified since 2002. It has long experience in providing Customs Clearance, Ship Clearance, Transportation, Lifting Equipment Service, Warehouse Rental and Cargo Forwarding Service.
About Brian J. Robinson
Mr. Brian J. Robinson has been the Chief Financial Officer of General Cable Corp. He is also the Chief Financial Officer, Executive Vice President and Treasurer at Alcan Products Corporation. Mr. Robinson holds a Bachelor of Science degree in Accounting from the University of Dayton and received his Certified Public Accountant certification in 1993.