Acquisitions: Belden expands into Asia, buys cable vendor
St. Louis, MO —Seeking to increase its presence in fast-growing markets, signal transmission products manufacturer Belden acquired a Hong-Kong-based cable manufacturer earlier this month. The company signed a definitive agreement to purchase LTK Wiring Co. Ltd . in an all-cash transaction for approximately $195 million. LTK Wiring is among the largest manufacturers of electronic cable for the China market, with 2006 revenues reported to be approximately $220 million. This is Belden's second acquisition in as many months.
"This acquisition propels us toward one of our stated objectives, expanding our presence in faster growing emerging markets," said John Stroup, Belden CEO. "It adds another prestigious brand to our portfolio and better positions us to compete effectively in China. We are confident that LTK Wiring has the management depth and strong infrastructure to be a platform for Belden's growth throughout the region," he observed.
Stroup called LTK Wiring a valued cable supplier to companies manufacturing consumer electronics, telecom equipment, white goods, automobiles, and other OEM products in China, and noted that the purchase positions Belden to better serve its Asia customers in networking, broadcasting, and industrial infrastructure.
Simon T. Y. Cua, managing director of LTK Industries Ltd., will continue as managing director of LTK Wiring during the transition period. LTK Wiring employs about 2,000 in three manufacturing plants in China and maintains offices in Japan, Taiwan, Korea, Singapore, and Thailand as well. The deal is expected to close in about 60 days.
Belden also announced fourth quarter earnings results, posting a quarterly revenue increase of 14.3% from the prior-year fourth quarter revenue. The company also noted a 20.1% increase in revenue in 2006 compared to 2005. Stroup said the company was "very pleased with our 2006 results," and citing recent acquisitions noted that the company has "made solid progress with the execution of our strategic plan."
Read more about the January 2007 Belden plan to acquire Hirschmann Automation and Control (HAC) for approximately $260 million in cash. HAC manufactures industrial connectors and industrial Ethernet switches.
—Control Engineering Daily News Desk
Edited by Jeanine Katzel , senior editor
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