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Superior TeleCom to buy Essex International

Nov. 1, 2003
Superior TeleCom, Inc., New York, N.Y., and Essex International, Inc., Fort Wayne, Ind., said their respective boards of directors have approved a merger

Superior TeleCom, Inc., New York, N.Y., and Essex International, Inc., Fort Wayne, Ind., said their respective boards of directors have approved a merger agreement in which Superior will acquire Essex for nearly $1.4 billion in combined cash, stock and debt assumption. The combined company would have extensive market coverage and revenues in the $2.4-billion range.

The deal would combine two strong wire companies into one of the top producers of wire and cable in North America. The transaction comprises an outlay of $936 million, consisting of $769 million in cash and $167 million in liquidation value of new Superior preferred stock. Superior also will assume about $419 million in Essex debt.

Superior TeleCom makes telecommunications cable and multiplexers for the telephone company market. Following the acquisition, 35% of Superior's revenues will come from communications cable products, according to Superior's chairman and chief executive officer, Steven S. Elbaum. Another 35% will be generated by OEM sales of magnet wire, primary wire and electrical insulation materials.

Following the merger, Essex executives will retain control of the electrical operations and will figure prominently in the Superior hierarchy. Steven R. Abbott, president and CEO of Essex, will become president and chief operating officer of Superior.

About the Author

Doug Chandler | Senior Staff Writer

Doug has been reporting and writing on the electrical industry for Electrical Wholesaling and Electrical Marketing since 1992 and still finds the industry’s evolution and the characters who inhabit its companies endlessly fascinating. That was true even before e-commerce, LED lighting and distributed generation began to disrupt so many of the electrical industry’s traditional practices.

Doug earned a BA in English Literature from the University of Kansas after spending a few years in KU’s William Allen White School of Journalism, then deciding he absolutely did not want to be a journalist. In the company of his wife, two kids, two dogs and two cats, he spends a lot of time in the garden and the kitchen – growing food, cooking, brewing beer – and helping to run the family coffee shop.

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