Superior Essex Inc. announced Wednesday that it has signed an agreement for Seoul, South Korea-based LS Cable to acquire Superior Essex for $900 million.
The acquisition is not expected to have any impact on the Brownwood plant, plant manager Larry Jones said.
The company said in a press release that the acquisition will create “a global wire and cable industry leader.”
Company officials said there are no expected changes in Superior Essex’s workforce, and the company will continue to operate under the Superior Essex name as a wholly owned subsidiary of LS Cable. Its headquarters will be maintained in Atlanta, Ga., the company said.
LS Cable, once part of LG Electronics, was founded in 1962 and is South Korea’s top cable company, Superior Essex officials said in company documents.
The acquisition will create “a wire and cable industry leader with a strong product portfolio and capabilities in power cable, magnet wire, communications cable and copper rod,” Superior Essex said.
Superior Essex “has been working hard to enhance our geographic reach and product diversification,” Superior Essex said.
The acquisition “improves our global scale with a larger footprint in Asia, strengthens our position in telecommunications cable, and provides us entry into the power cable market,” Superior Essex said.
Under the terms of the merger agreement, a subsidiary of LS Cable will make a cash tender offer to purchase all of the outstanding shares of Superior Essex common stock for $45 per share, implying a total equity value of about $900 million, Superior Essex said in a press release.
LS Cable noted that it has fully committed financing which, together with its available cash resources and lines of credit, will provide the financing necessary to complete the transaction, Superior Essex said. The tender offer will not be subject to a financing contingency.
LS Cable expects to commence the tender offer on July 1, the day it completes a corporate reorganization and changes its name to LS Corp. The transaction is subject to customary closing conditions and regulatory approvals, including the tender of a majority of the outstanding shares of Superior Essex. The expiration date of the tender offer will be July 31 unless extended, Superior Essex said.
A 2006 profile of Brownwood companies showed the Superior Essex plant here with a workforce of about 400 employees.