DU PONT TO SELL CONNECTOR SYSTEMS BUSINESS TO HICKS, MUSE, & CO.
DU PONT TO SELL CONNECTOR SYSTEMS BUSINESS TO HICKS, MUSE, & CO. WILMINGTON, Del., Nov. 9 /PRNewswire/ -- Du Pont (NYSE: DD) announced today that it has reached agreement to sell its connector systems business to Hicks, Muse, & Co., Incorporated, a private investment firm with offices in Dallas and New York, for about $400 million including $25 million of senior preferred stock in the company. Investing with Hicks Muse in the transaction is Mill & Partners, Inc., of St. Louis, a firm that participates in acquisitions of industrial companies and enhances their performance by improving their operations. The acquisition is expected to be completed before year end. Du Pont Connector Systems is a global manufacturer of electronic connectors and related cable assemblies, primarily for the data processing, instrumentations, and telecommunications industries. Customers include all major electronics OEMs and subcontractors. Last May Du Pont announced its intention to divest its connectors business, either through sale or IPO, because it was not strategic to its core electronics business portfolio. The new entity will be known as Berg Electronics, Inc. Norris Tolson, vice president and general manager of Du Pont Connector Systems, will serve as president and chief operating officer and will have, along with certain other members of its management team, an ownership position in the company. "Du Pont Connector Systems, like all of the companies we have acquired over the past several years, is an outstanding enterprise with an excellent management team, a consistent record of operating profitability, a strong and defensible niche-market position, and solid growth potential, both internally and through add-on acquisitions," said Thomas O. Hicks, chairman and chief executive officer of Hicks Muse. C.L. Henry, senior vice president, Du Pont, called the Hicks Muse acquisition "an excellent outcome for Du Pont Connector Systems employees and Du Pont shareholders." Du Pont Connector Systems employs about 3,000 people, about one- third in each of three regions: the Americas, Europe, and Asia Pacific. Du Pont entered connector manufacturing with the acquisition of Berg Electronics in 1972 and grew its sales from $25 million to more than $400 million last year. Hicks, Muse & Co., Inc. specializes in leveraged acquisitions. In the past two and a half years it has engaged in 10 acquisitions with a total capital value of about $2.6 billion. Mills & Partners, organized by James N. Mills in 1985, has participated in several acquisitions led by Hicks Muse and a predecessor firm, Hicks & Haas. Du Pont is a diversified chemicals, specialty products, and energy company with 1991 revenues of $38.7 billion. /delval/ -0- 11/9/92 /CONTACT: Bob Rickenbach for Du Pont, 302-992-5009, or Roy Winnick for Hicks Muse, 212-593-2655/ (DD) CO: Du Pont; Hicks, Muse, & Co., Incorporated; Mills & Partners; Du Pont Connector Systems ST: Delaware IN: CPR SU: TNM
MK -- PH004 -- 8556 11/09/92 09:22 EST
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|Date:||Nov 9, 1992|
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