General Cable Corp., Highland Heights, Ky., agreed to acquire a majority interest in Procables S.A for $45 million, subject to adjustments for net working capital and net indebtedness levels. The transaction, which gives General Cable a 60 percent stake in the Colombian cable manufacturer, is expected to close in the second half of 2012, subject to regulatory approval. The Sredni Group will maintain a 40 percent interest in the business.
Privately owned Procables has two manufacturing facilities in Bogota and Barranquilla making a broad range of wire and cable products, including low- and medium-voltage power cables, building wire, industrial, communications, and bare aluminum conductors as well as operating copper and aluminum rod mills. In 2011, Procables reported revenues of $120 million.
“We are pleased to be partnering with the Sredni Group, a local privately held conglomerate with over 50 years of experience in the Colombian industrial sector,” said Mathias Sandoval, president and CEO of General Cable's Rest of World business. “This transaction enables us to partner with a well-established company with a strong regional commercial strategy and extensive distribution network while at the same time applying General Cable's technical and operational expertise as we further expand the product portfolio and the value proposition to customers throughout the Andean Region.”