Phelps Dodge Corp. has agreed to sell substantially all its North American magnet wire assets to Rea Magnet Wire Co. Inc. Under the agreement, Rea will purchase the assets, including certain copper inventory, for approximately $125 million in cash.
The sale will include Phelps Dodge manufacturing operations in Fort Wayne, Ind., and Monterrey, Mexico, and inventory held for distribution at various North American warehouses. The transaction will not include the Phelps Dodge’s Fort Wayne, Ind., technology center or a magnet wire plant in Suzhou, China. Under the agreement, Phelps Dodge will continue to be a primary supplier of copper rod to Rea.
Phelps Dodge anticipates that nearly all its approximately 600 magnet wire employees involved in plant manufacturing operations will be offered positions with Rea.
The sale is subject to customary closing conditions, including regulatory approvals.