Hexatronic to acquire Rochester Cable from TE Connectivity for $55m
Hexatronic Group (Hexatronic) has inked a binding asset purchase agreement to acquire Rochester Cable, from TE Connectivity (TE) for an enterprise value of US$55 million.
Rochester Cable is a designer and manufacturer of electro-optical cables for operation in harsh environments serving industries such as oil and gas, sensing, defence, oceanographic, and subsea applications.
Boasting 130 employees based in Culpeper, Virginia, Rochester Cable also has a 40,000 square metre production site, where the company manufactures armoured electro-optical working cables that provide strength and transmit power, control signals, and data.
“We are happy to have reached an agreement with TE Connectivity to acquire the business activities of Rochester Cable. Rochester Cable is uniquely positioned with its know-how and application expertise, which has been developed as a market leader for decades," said Henrik Larsson Lyon, CEO of Hexatronic Group.
"The highly skilled team has developed a truly differentiated offering and long-term partnerships with its customers. Hexatronic has been a supplier of fibre optic submarine communication cables since the 1990s. Combining the know-how, geographical footprint, and product portfolio of Rochester Cable in the US and Hexatronic submarine business in Sweden provides exciting opportunities for the future.”
Once completed, the acquisition will boost Hexatronic’s fibre-optic subsea communication cable offering to include dynamic working cables that can transmit electrical signals and power in addition to optical signals. The electro-optical cables can accommodate extreme water depths of up to 6,000 meters and connect a variety of sensors, equipment, and remotely operated vehicles.
Under the terms of the deal, the acquired business includes the land and buildings of the production sites and office buildings and the $55 million purchase price is to be paid in cash, fully financed with senior debt.
The acquisition is immediately accretive to earnings, adding an estimated 0.18 SEK ($0.016) per Hexatronic share in the first full year.
Completion of the transaction is subject to regulatory approvals and is expected to close no later than 31 March 2023.