French Firm Buys El Dorado Cable Company For $275 Million
by February 14, 2012 5:18 pm 213 views
Paris-based Nexans has acquired El Dorado industrial cable company, AmerCable Holdings, Inc., for $275 million.
Nexans, a worldwide cable company, makes products for the mining, oil and gas and renewable energy markets. According to a Nexans press release, AmerCable is the No. 1 producer of mining, marine, oil and gas and other industrial cables in North America.
“We are happy to welcome AmerCable associates within our group. The acquisition of AmerCable fits well with Nexans’ strategy to develop its Industry division extending its presence in markets with high-growth prospects and above market profitability,” said Nexans CEO Frédéric Vincent.
“The global mining market is expected to benefit from strong global growth, in particular in the coal market in the U.S. and China, and the Oil & Gas market is expected to benefit from increased drilling activity (both onshore and offshore) and increasing well complexity. In particular the growing shift in North America towards unconventional oil and gas development is set to increase demand for AmerCable’s products and services,” he added.
Based in El Dorado, Arkansas, AmerCable employs approximately 400 workers. The company makes industrial cables, but also provides engineering and support services to the energy industry. The majority of its sales are in North America, but it also has accounts in China, Latin America and Australia.
Nexans said AmerCable’s 2011 sales revenue totaled $270 million. The merger is expected to close by February 29, 2012.