General Cable Completes Sale of Its Thailand Operations
By Business Wire News
By Business Wire News
HIGHLAND HEIGHTS, Ky.
General Cable Corporation (NYSE: BGC) (“the Company”) today announced it has completed the sale of its Thailand operations to MM Logistics Co. Ltd. for cash consideration of approximately $88 million. The closing of the sale of the Thailand operations is the first of a two-step closing process. The Company expects the second closing to complete the sale of the remaining Asia Pacific operations including China, New Zealand and Australia to occur at the end of September, subject to customary closing conditions. Upon completion, the Company expects to generate approximately $205 million of cash proceeds from the sale of Thailand, China, New Zealand and Australia. Proceeds will be used to reduce outstanding borrowings and pay related fees and expenses.
“We are executing our divestiture plan and focusing on operational excellence in our core markets in North America, Europe and Latin America,” said Mike McDonnell, President and Chief Executive Officer. “Our financial position continues to improve as we apply sale proceeds to reduce outstanding borrowings and improve our core operations. Upon completion of the sale of Asia Pacific including Thailand, China, New Zealand and Australia and the prior sales of our interests in the Philippines, Keystone Wire and Cable (China) and Dominion Wire and Cable (Fiji), we expect to generate total cash proceeds of approximately $293 million which is consistent with our previously communicated expectations.”
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 are forward-looking statements that involve risks and uncertainties, predict or describe future events or trends and that do not relate solely to historical matters. Forward looking statements include, among others, expressed expectations with regard to the following: “believe,” “expect,” “may,” “will,” “anticipate,” “intend,” “estimate,” “project,” “plan,” “assume,” “seek to” or other similar expressions, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those discussed in forward-looking statements as a result of factors, risks and uncertainties over many of which we have no control. These factors include, but are not limited to: the economic strength and competitive nature of the geographic markets that the Company serves; our ability to increase manufacturing capacity and productivity; our ability to increase our selling prices during periods of increasing raw material costs; our ability to service, and meet all requirements under, our debt, and to maintain adequate domestic and international credit facilities and credit lines; our ability to establish and maintain internal controls; the impact of unexpected future judgments or settlements of claims and litigation; impact of foreign currency exchange rate fluctuations; impact of future impairment charges; compliance with U.S. and foreign laws, including the Foreign Corrupt Practices Act; consummation of the sale of the remainder of our Asia Pacific operations and the final net cash and working capital adjustments to the purchase price for the Asia Pacific operations sold; our ability to achieve the anticipated cost savings, efficiencies and other benefits related to our restructuring program and other strategic initiatives and the other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”), including but not limited to, its annual report on Form 10-K filed with the SEC on March 2, 2015, and 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, unless required to do so by applicable securities laws, to update any forward-looking statements as a result of new information, future events or other factors.
General Cable Corporation
Len Texter, 859-572-8684
Vice President Finance, Investor Relations