Coleman Cable Inc., Waukegan, Ill., has agreed to acquire all of the equity interests in Copperfield LLC, Bremen, Ind., for $213 million in cash.
It's a move Coleman Cable executives believe will help the company become one of the premier U.S.-based manufacturers of electrical and electronic wire and cable products.
Spell Capital Partners, a private equity and buyout firm based in Minneapolis, is currently the majority owner of Copperfield, one of the largest private fabricators and insulators of copper electrical wire and cable in the United States. Copperfield sells its wire and cable products to industrial distributors and OEMs in a broad array of markets, including the electrical, recreational vehicle, transportation, appliance and welding cable sectors. Copperfield estimates its revenues and EBITDA for the 12 months ended Dec. 31, 2006, will be approximately $520 million and $35.3 million, respectively.
According to Kathy Jo Van, group vice president of Coleman Cable's electrical group, the company did a private placement of equity in October, with subsequent registration rights, and on March 1 the company's stock began trading on the NASDAQ. The company's stock is trading under the symbol CCIX.At press time it was trading at approximately $21 per share.
The acquisition would broaden the scope of Coleman Cable's product offering, further strengthen its strategic relationships with industrial distributors and increase Coleman's end-market diversity. “After the Copperfield acquisition is finalized, I think you will see a lot more activity out of us,” said Van.
“Copperfield is an excellent strategic fit and a logical step in the continued growth and development of our business,” said Gary Yetman, CEO of Coleman Cable. “This transaction represents a unique opportunity to acquire a preeminent industry player and seasoned management team that will significantly enhance Coleman Cable's position as a leading provider of wire and cable products in numerous niche industrial end markets.”