Southwire to acquire Coleman Cable

by AP

alt


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.



More Local

Is former city manager back in the running in Grantville?

Johnny Williams is back in the hunt to reclaim his old job as Grantville city manager. The move to rehire Williams might prove difficult as ... Read More


UPDATE

Body in creek: No sign of foul play

After a preliminary investigation Friday, authorities do not believe Willie Jerel Stargell’s death was a homicide. On Thursday, Starge ... Read More


Locals react to new take on Cuba

On Wednesday, President Barack Obama announced his plans to renew and normalize relationships between the Unites States and Cuba. Although U ... Read More


First Fill the Stocking checks presented

The first checks for the Fill the Stocking campaign for 2014 have been presented – helping to meet needs of families and children duri ... Read More


Schools ask for input on 2016-2017 calendar

The Coweta County Board of Education is seeking public input and comment for the revisions to the proposed 2016-2017 school calendar. The pu ... Read More

Christmas gift ideas at local businesses

Looking for the perfect present? Look no further than Coweta’s small businesses. They offer great gifts at affordable prices. Here&rsq ... Read More