General Cable Acquires Global Offshore Cable Supplier
Highland Heights, KY - General Cable Corporation announced recently that it has agreed to acquire Norddeutsche Seekabelwerke GmbH & Co. KG (NSW), located in Nordenham, Germany from Corning Incorporated. The transaction was expected to close Monday, April 30, 2007. NSW had revenues of approximately $120M in 2006.
"With more than 100 years of experience, NSW has tremendous technical expertise offering complete solutions for submarine cable systems including the manufacturing, engineering, seabed mapping, project management, and installation for the offshore communications, energy exploration, transmission, distribution, and alternative energy markets," said Gregory B. Kenny, President and Chief Executive Officer of General Cable. NSW is a leading global supplier of offshore communications, power and control cables as well as aerial cables for power utility communication and control networks. NSW has been in operation since 1899 and is situated in an ideal location with a deep-sea pier capable of loading cable laying ships directly from their production facility on the North Sea in northern Germany. NSW has manufactured and installed submarine projects throughout the world, including one of the world's longest hybrid submarine communications cable systems extending 8,600 km linking 15 countries. Offshore cable demand is strengthening driven by offshore oil and gas exploration, renewable energy, as well as traditional power requirements to inter-coastal and island areas. Also, after many years of maintenance level spending by global telecommunications carriers for submarine fiber optic cable, network capacity utilization rates have begun to increase. With global demand for voice, video, and data increasing, telecommunications carriers are now looking to reinvest and add capacity in the global submarine network. "This acquisition brings the critical technology to allow us to fully address one of the fastest growing high value-added markets for energy, control and communication cables and systems, with an addressable market well in excess of $1 billion. We expect this acquisition to be modestly accretive in its first full year of operations," Kenny said.
NSW is also a market leader for a variety of specialty products including specialized high-end winding wire for high voltage motor applications and specialty extrusions for various filtration and waste water treatment applications.
"General Cable is very pleased to have the NSW team join our global organization. NSW's highly regarded technology platform and brand name combined with General Cable's vast array of complementary products, marketing and logistics strengths will provide a more complete solution which will be sold globally to these expanding markets," said Domingo Goenaga, President and Chief Executive Officer, General Cable Europe.
SOURCE: General Cable Corporation