ATLANTA—Superior Essex Inc. (Nasdaq:SPSX), one of the world’s largest wire and cable manufacturers, has completed acquisition of 80 percent of the ownership of Nexans Tiajin Magnet Wires and Cables Co. Ltd.
The purchase price is approximately $10 million in cash. In connection with the acquisition, the Company refinanced the Tianjin entity’s outstanding debt under a new credit facility of up to $22.5 million. Following the closing, the net debt of the Tianjin company is approximately $8 million. The operations produce around 13 million pounds of magnet wire annually and generated sales of approximately $40 million in 2006.
“The Tianjin operations are well established and will give us immediate scale in China,” said Stephen M. Carter, chief executive officer of Superior Essex. “We believe the Tianjin business will be complementary to our Suzhou, China, magnet wire operations, which began initial commercial production this year.”
The Tianjin business, when combined with the operations of the Company’s recently acquired Canadian acquisition and its current European magnet wire operations, will make Superior Essex a global leader in the growing, energy- related magnet wire product segment.
On the Web: www.superioressex.com
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