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22
May
2012

General Cable to acquire Alcan Cable

General Cable announced yesterday that it has agreed to acquire Alcan Cable, the wire and cable business of Rio Tinto.
The purchase price is 185 million USD in cash and transaction is expected to close in the second half of 2012, subject to receipt of regulatory approval.

Alcan Cable employs approximately 1,050 associates in its aluminum cable manufacturing and distribution facilities servicing the energy and construction markets in the United States, Canada, Mexico, and China. In 2011, Alcan Cable reported operating margins in the low single digit range.

On an annual basis, the Company estimates the acquisition will contribute approximately $650-700 million in revenues at current metal prices. Over a cycle, Alcan Cable’s operating margin profile is expected to be consistent with the Company’s existing North American businesses as manufacturing, logistics, and purchasing synergies are realized.
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