FDC advises General Cable on Acquisition of Sagem Communication’s cables business
22 December 2005
General Cable Corporation (GCC – NYSE:BGC), a leading global supplier of wire and cable products for the energy, specialty, industrial and communications markets, headquartered in Highland Heights, Kentucky, announced the acquisition on December 22nd of Silec, the energy cable business of Sagem Communication, a subsidiary of the French group Safran, for a consideration of 75 millions €, to be adjusted on issuing of the balance sheet at completion.
Silec is recognized as a global leader in the design, engineering and installation of high voltage underground links. The company is also among the major producers of energy and industrial cables for the European market. In 2004, Silec reported global sales of approximately 210 million € with about 60% derived from the sale of energy cables.
“We look forward to the opportunity to create value through the combination of General Cable's worldwide sales and marketing reach and lean manufacturing techniques and Silec’s expertise in the high-end energy transmission cable business” said Domingo Goenaga, President and Chief Executive Officer of Gen Europe.
Financière de Courcelles had identified Sagem’s cables business as an excellent fit for General Cable which they knew was the leading American cables manufacturer with a worldwide strategy. General Cable confirmed their interest in the business and decided to appoint Financière de Courcelles to manage the purchase process.
Financière de Courcelles’ Partners Jane Coblence and Yves Raoux successfully managed the transaction till completion.
According to Gregory Kenny, President and CEO of General Cable, “The acquisition of Silec and its well demonstrated technical leadership globally, represents a critical step in building a worldwide position in energy transmission and distribution cable systems.” Kenny added that he was extremely impressed by the patient advice of Financière de Courcelles. Their advice always looked for the best answer for General Cable but was sensitive to the needs of the seller. Kenny found that Financière de Courcelles was different than many advisory firms by their willingness to provide thoughtful counsel on every aspect of the transaction, including operational issues and every nuance of a complex closing. Financière de Courcelles stayed with it until the very end, never losing focus nor discipline around the process. Their knowledge of the European M&A market generally, and the French market specifically, was extremely helpful.
