NEW YORK General Cable Corp. has completed its previously announced acquisition of Alcan Cable China, the wire manufacturer said Monday.
Alcan Cable China, which comprises a manufacturing plant in Tianjin and 10 regional sales offices, primarily serves the rapidly expanding Chinese cable market and represents some 10 to 15 percent of Alcan Cables overall revenue, Highland Heights, Ky.-based General Cable said.
"Since its start-up in 2007, the business has matured in a relatively short amount of time building a sales infrastructure and a premium brand with a strong reputation in the Chinese market, which represents nearly one-third of global wire and cable demand," Alex Tham, managing director of Alcan Cable China, said in a statement.
General Cable closed on its $151-million cash purchase of Alcan Cables North American operations from Rio Tinto Plc earlier this fall (amm.com, Sept. 5). At the time, the company said it expected to complete its related purchase of Alcan Cable China before the end of the year for an additional $34 million in cash.
General Cable said it doesnt expect the Chinese acquisition to have much impact on fourth-quarter earnings, since accounting costs will largely offset earnings in the region. Its newly purchased North American operations, however, are expected to "contribute meaningfully" in the final three months of the year, General Cable said.
"We are off to a fast start executing on our integration plans in North America and expect to do the same with the business in China," Gregory B. Kenny, president and chief executive officer of General Cable, said in the statement.
London-based Rio Tinto, which originally purchased Alcan for $38 billion in 2007, sold Alcan Cable earlier this year (amm.com, May 21) as part of a large-scale effort to divest non-core assets and pare down debt.