Coleman Cable finalises USD35m Watteredge buy.
1 June 2012 - US wire and cable products maker Coleman Cable Inc (NASDAQ:CCIX) said it had wrapped up, through its subsidiary Watteredge LLC, the all-cash, USD35m (EUR28.3m) takeover of Watteredge Inc.
The buyer said it intends to keep Watteredge's staff and continue all of its manufacturing activities at Watteredge's current production facility in Avon Lake, Ohio. The deal was completed on 31 May.
Coleman added that it expects that the acquisition will add about USD6m to USD7m to its adjusted EBITDA and some USD0.10 and USD0.15 of diluted EPS in 2013. The acquired assets are expected to contribute USD3m to USD3.5m in adjusted EBITDA for the remainder of the current year and be earnings neutral for the balance of 2012 given the projected impact of purchase accounting.
The target company, with 2011 sales of about USD25m and adjusted EBITDA of USD6m, produces secondary power connectors, including electric arc furnace cables, resistance welding cables, industrial high-performance copper bus bars and accessories, and other high performance power conduction devices and accessories. The companya[euro](tm)s clients come from the steel, chemical, chlorine, power generation, fiberglass and automotive sectors.Country: USASector: Machinery/EngineeringTarget: Watteredge IncBuyer: Coleman Cable Inc, Watteredge LLCDeal size in USD: 35mType: Corporate acquisitionStatus: Closed