Southwire made news again in the wire and cable industry with its purchase of United Copper Industries, Denton, Texas, the third largest manufacturer of building wire in the United States, from KPS Capital Partners, a New York-based private-equity firm. United Copper also produces metal-clad cables.
According to a Southwire press release, United Copper Industries has a workforce of approximately 300 employees and a 450,000-sq-ft-facility in Denton that includes sales and support resources, a copper rod mill, a manufacturing plant and distribution resources. Southwire plans to fully integrate this campus into its existing operations so the campus will serve as a strategically-located facility with opportunities for long-term operations, expansion and increased capacity. Southwire said the acquisition expands its manufacturing capabilities in the core building wire products segment and enhances its geographical footprint, increasing the ability to respond to customer growth in key markets.
KPS built United Copper from a 2011 acquisition of the U.S. wire and cable assets of Organizacion IUSA, S.A. de C.V. A KPS press release said that under its ownership, UCI transitioned to an independent company by “retaining a new management team and creating a new organizational structure; investing a substantial amount of capital to modernize UCI’s equipment, materially improving its operating cash cost structure, labor productivity and plant efficiency; and implementing a new strategic, service-oriented approach to customers and the market that led to volume increases well in excess of overall market growth.”
Southwire, a privately held company with annual sales that top $5 billion, according to Forbes magazine, has made quite a few blockbuster acquisitions since Roy Richards, Sr., started the company in 1950 with 12 employees. The company’s acquisitions include Alflex, American Insulated Wire (AIW), Coleman Cable, Essex Electrical Products, Maxis, Seatek and Tappan Wire and Cable and General Cable’s building wire assets.
Southwire and United Copper both use independent reps to go to market, although Southwire uses a blend of reps and factory-employed regional salespeople.