ORANGE, Conn.--(BUSINESS WIRE)--Oct. 5, 2009--
Hubbell Incorporated (NYSE: HUBA, HUBB) today announced that it
completed the purchase of FCI Americas, Inc. (the business known as
“Burndy®”) for consideration of approximately $360 million in cash (net
of cash acquired) subject to certain standard adjustments.
Burndy, founded in 1924 and headquartered in Manchester, New Hampshire,
is a leading manufacturer of connectors, cable accessories and tooling.
Burndy serves commercial and industrial markets and utility customers
primarily in the United States (with roughly 25% of sales in Canada,
Mexico and Brazil). 2008 sales were approximately $225 million and
operating profit margins were in the high teens.
Burndy will continue to operate as a stand alone business unit as part
of Hubbell’s electrical systems products for the foreseeable future. The
acquisition was funded with cash as well as some short term borrowings.
Hubbell will continue to actively evaluate available alternatives for
permanent financing to best meet its capital structure objectives going
forward. The acquisition is expected to be accretive to earnings in 2010.
Timothy H. Powers, Chairman, President, and Chief Executive Officer of
Hubbell Incorporated said, “I am excited that we have been able to
complete the purchase of Burndy. Since we signed the definitive
agreement in July, our management team has been coordinating with Burndy
and FCI to ensure a smooth integration. Our extensive interactions over
that period of time have served to reinforce the outstanding fit we see
between Hubbell and Burndy and the business opportunities that can be
realized over time. Burndy’s product quality, relationships with
distributors, and emphasis on people are a natural complement to
Hubbell. Hubbell welcomes the Burndy employees to our family and we look
forward to serving our customers with a broader and deeper product line.”
Certain statements contained herein may constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements may be identified by the use of
forward-looking words or phrases and include the expected effect of the
transaction on the Company’s earnings and the expected sales and
operating efficiencies. Such forward-looking statements are based on the
Company’s reasonable current expectations and involve numerous
assumptions, known and unknown risks, uncertainties and other factors
which may cause actual and future performance or achievements of the
Company to be materially different from any future results, performance,
or achievements expressed or implied by such forward-looking statements.
Hubbell Incorporated is an international manufacturer of quality
electrical and electronic products for a broad range of non-residential
and residential construction, industrial and utility applications. With
2008 revenues of $2.7 billion, Hubbell Incorporated operates
manufacturing facilities in the United States, Canada, Puerto Rico,
Mexico, the People’s Republic of China, Italy, Switzerland, Brazil,
Australia and the United Kingdom. Hubbell also participates in joint
ventures in Taiwan and Hong Kong, and maintains sales offices in
Singapore, Hong Kong, South Korea, the People's Republic of China,
Mexico, and the Middle East. The corporate headquarters is located in
Orange, CT.
Source: Hubbell Incorporated
Hubbell Incorporated
William R. Sperry, 203-799-4100