General Cable Corp., Highland Heights, Ky., has agreed to acquire a majority interest (60%) in Procables S.A. for total consideration of $45 million, subject to typical adjustments for net working capital and net indebtedness levels. The transaction is expected to close in the second half of 2012. The Sredni Group will maintain a 40% interest in the business. The privately owned manufacturer has two manufacturing facilities in Bogota and Barranquilla that offer 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 USD and is expected to be accretive in the first full year of operation.
Gregory Kenny, General Cable's president and CEO, said in a press release, “This transaction greatly enhances our presence in this strategically important market in the Andean Region further solidifying our geographic coverage throughout the Americas which is one of the most extensive in the wire and cable industry. With a population of 46 million and one of the largest economies in Latin America, Colombia represents a meaningful opportunity for growth. The Colombian economy is expected to continue to expand led by ongoing investments in housing and electrical infrastructure as well as developments in the oil and mining sectors all of which we expect will drive greater demand for wire and cable.”