In what one independent manufacturers’ rep called the “largest and most dynamic purchase” since its acquisition of American Electric, the Memphis, Tenn.-based Thomas & Betts Corp. (T&B), agreed to acquire Lamson & Sessions in a cash transaction valued at $27 per share or approximately $450 million.
If the acquisition is approved, Lamson & Sessions’ products would become part of T&B’s electrical division and would give the company a broader array of non-metallic boxes, fittings and enclosures, according to Tricia Bergeron, a T&B spokesperson. Lamson & Sessions’ board has unanimously approved the agreement and will recommend that shareholders approve it. The transaction is expected to close in late 2007.
Dominic Pileggi, T&B’s chairman and CEO, said the acquisition would be a great fit with Thomas & Betts, and that it’s consistent with the company’s strategy of expanding its portfolio of “market-leading brands and leveraging our business infrastructure to enhance our already strong relationship with distributors and end users of electrical products.”
“Lamson & Sessions is a well-known, leading North American supplier of non-metallic electrical boxes, fittings, flexible conduit and industrial PVC pipe,” he said. “The company enjoys a well-deserved reputation for delivering high-quality products and best-in-class customer service. Its Carlon brand and trademarked Blue Box are the most recognized non-metallic electrical outlet boxes in the industry.”
Gene Biben, principal, Joseph E. Biben Sales Corp., Philadelphia, a manufacturers’ rep for both T&B and Carlon, said the biggest difference between T&B and Carlon is that T&B is one of the electrical market’s largest producers of electrical metallic fittings, while Carlon is the largest manufacturer of electrical nonmetallic products for the commercial/industrial markets. “There are very few areas of conflict between the two companies, because one specializes in metallic and one specializes in non-metallic,” he said.
Biben said the acquisition would give T&B a larger user base because they would add more utility products, more Department of Transportation products, and add significantly more underground products. The acquisition would also have benefits for T&B’s distributors, because they would be able to get their metallic and non-metallic fittings from one manufacturer rather than having to go to two or more manufacturers.
Lamson & Sessions, which reported net sales of $561.3 million in 2006, manufactures thermoplastic enclosures, fittings, wiring outlet boxes and conduit for the electrical, telecommunications, power and wastewater markets. The company has three business units, the best-known in the electrical market being Carlon, which many electrical contractors and do-it-yourself consumers call “the blue box company.” The company’s products include wiring device boxes, floor boxes, flexible conduit for electrical, thermoplastic enclosures for industrial and OEM applications, large junction boxes for outdoor lighting installations, and non-metallic wiring trough. Carlon’s corrugated nonmetallic tubing (nicknamed “Smurf tube”) for voice-data-video applications has also become quite popular.
Lamson & Sessions also has Lamson Home Products, which manufactures and markets electrical products for home or office, including electrical conduit and fittings, security and safety products, lighting controls and dimmers and wireless switches and door chimes.
Thomas & Betts, with 2006 revenues of $1.9 billion, manufactures electrical components used in construction, industrial and utility markets. The company is also a leading producer of commercial heating and ventilation units and highly engineered steel structures used primarily for utility transmission.