Southwire to acquire Coleman Cable
CARROLLTON, Ga. (AP) — Southwire Co. says it plans to acquire wire and cable maker Coleman Cable Inc. for $26.25 per share.
The deal, announced Friday, values Coleman at about $492 million, excluding the assumption of $294 million in debt.
Southwire, based in Carrollton, Ga., is North America's largest wire and cable producer. The privately held company said the deal will expand its offerings and provide a stronger platform for product innovation.
Under the agreement, Southwire will launch a tender offer by Jan. 6 for all the outstanding shares of Coleman common stock. At $26.25 per share, the offer represents a nearly 17 percent premium to the company's closing stock price Oct. 29, the last day of trading before reports about a potential transaction.
The deal has already been approved by Coleman's board of directors. It is expected to close in the first quarter of 2014.
If completed, Coleman's management team will join Southwire, which expects to maintain a significant presence in Waukegan, Ill., where Coleman is headquartered.
Shares of Coleman jumped 7 percent to $26.25 by midday following the announcement.