General Cable Announces Agreement to Sell Its North American Automotive Ignition Wire Business
By Business Wire News
By Business Wire News
HIGHLAND HEIGHTS, Ky.
General Cable Corporation (NYSE: BGC), (the Company) today announced it has reached a definitive agreement to sell its North American automotive ignition wire business to Standard Motor Products, Inc. (NYSE: SMP) for cash consideration of approximately $71 million, subject to customary post-closing adjustments. The Company expects to close the sale in the near future. Proceeds will be used to reduce outstanding borrowings.
“We are executing our new strategic roadmap, and a key component of the roadmap is focusing and optimizing our portfolio of businesses,” said Mike McDonnell, President and Chief Executive Officer. “While the automotive ignition wire business has been a strong performing business for us over the years, we determined through our strategic review that it is not aligned with our strategic and financial criteria going forward. As previously communicated, we are focused on growing our businesses in the electric utility, communications and industrial markets where we have leading positions, scale and sustainable profitability.”
General Cable (NYSE:BGC), a Fortune 500 Company, is a leader in the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for the energy, industrial,and communications markets. For more information about General Cable visit our website at www.generalcable.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release, including statements about the consummation of the sale of our North American automotive ignition wire business and the final adjustments to the purchase price are forward-looking statements. Forward-looking statements are statements that predict or describe future events or trends or statements that do not relate solely to historical matters. Forward-looking statements involve assumptions, risks and uncertainties, and actual results may differ materially from those discussed in forward-looking statements as a result of a number of factors, risks and uncertainties, all of which are hard to predict and many of which are beyond our control. These factors, risks and uncertainties include, but are not limited to, our ability to consummate the sale of our North American Automotive ignition wire business, the final adjustments to the purchase price and the other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”), including its annual report on Form 10-K filed with the SEC on February 29, 2016 and its subsequent SEC filings. You are cautioned not to place undue reliance on these forward-looking statements. General Cable does not undertake, and hereby disclaims, any obligation to update any forward-looking statements as a result of new information, future events or other factors, unless required to do so by applicable securities laws.
General Cable Corporation
Senior Vice President
Global Finance & Investor Relations