Acquisitions: Belden expands into Asia, buys cable vendor

02/20/2007


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





No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
Each year, a panel of Control Engineering editors and industry expert judges select the System Integrator of the Year Award winners.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Learn how to create value with re-use; gain productivity with lean automation and connectivity, and optimize panel design and construction.
Go deep: Automation tackles offshore oil challenges; Ethernet advice; Wireless robotics; Product exclusives; Digital edition exclusives
Lost in the gray scale? How to get effective HMIs; Best practices: Integrate old and new wireless systems; Smart software, networks; Service provider certifications
Fixing PID: Part 2: Tweaking controller strategy; Machine safety networks; Salary survey and career advice; Smart I/O architecture; Product exclusives
The Ask Control Engineering blog covers all aspects of automation, including motors, drives, sensors, motion control, machine control, and embedded systems.
Look at the basics of industrial wireless technologies, wireless concepts, wireless standards, and wireless best practices with Daniel E. Capano of Diversified Technical Services Inc.
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
This is a blog from the trenches – written by engineers who are implementing and upgrading control systems every day across every industry.
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Control Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.