Cable Technology Feature Article
Belden to Sell Thermax, Raydex Cable Business Units to Carlisle Companies
By Ed Silverstein, TMCnet Contributor
Belden will sell its Thermax and Raydex cable business units to Carlisle Companies for about $265 million.
The businesses provide cable to the aerospace and defense sectors – and the sale shows that Belden is leaving those markets, Reuters reported.
The deal will close by the end of the year, after it gets regulatory approvals.
“As evidenced by the value of the transaction and the performance of these businesses, they are tremendous assets that will be right at home with a great company. We believe this transaction is in the best interest of shareholders as we further transform our portfolio,” John Stroup, Belden’s president and CEO, said in a company statement carried by TMCnet.
The company also plans to repurchase up to $200 million of its common stock. Belden can purchase the equity at “an attractive price,” Stroup added.
Belden designs, makes and markets cable, connectivity, and networking products. They are targeted to industrial automation, broadcast, enterprise, transportation, infrastructure, and consumer electronics sectors.
Thermax and Raydex manufacture hook-up, data and coaxial wires and cables for commercial aerospace, avionics, electronics, defense and industrial uses. The wires and cables are used to transmit data and power. They have annual sales of about $112 million. Its manufacturing facilities are in Nogales, Mexico, Littleborough, United Kingdom and Fountain Valley, Calif.
After the sale is complete, the business will operate as part of Carlisle Interconnect Technologies, which provides wire, cable and interconnect components for avionics systems, commercial and military aircraft, communications systems, and in-flight entertainment, the company said.
“We are excited about the acquisition of Thermax-Raydex, as the company adds capabilities and technology to strengthen our interconnect products business in very attractive aerospace and industrial sectors,” David A. Roberts, Carlisle’s chairman, president and CEO, said in a company statement. “Thermax-Raydex expands our product, technology and service ranges to our customers. This acquisition is consistent with our focus on higher margin, highly engineered products and is an excellent fit with Carlisle.”
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Edited by Rich Steeves