ORANGE, Conn.--(BUSINESS WIRE)--Jul. 22, 2009--
Hubbell Incorporated (NYSE: HUBA, HUBB) today reported the signing of a
definitive agreement to acquire FCI Americas, Inc. (the business known
as “Burndy®”) for consideration of $360 million in cash, subject to
certain standard adjustments.
Burndy, headquartered in Manchester, NH, is a leading North American
manufacturer of connectors, cable accessories and tooling serving
utilities as well as commercial and industrial customers. In 2008,
Burndy generated sales of approximately $225 million with operating
profit margins in the high teens. Products are primarily sold through
distributors, the same channel utilized by Hubbell. Sales are roughly
63% Construction & Industrial and 37% Utility while the geographic split
is approximately 75% in the U.S. and 25% in Canada, Brazil and Mexico.
Burndy was founded in 1924 and their brand has a long history
representing quality, reliability, innovation and customer service. In
2008, Burndy won awards as supplier of the year from WESCO
International, Inc. and Border States Industries, Inc. and received
Graybar Electric Company, Inc.’s award for innovation. Burndy operates 3
manufacturing facilities in the Northeastern U.S., 1 in Brazil and 1 in
Mexico.
Completion of the transaction is expected to be on or around October 1st,
subject to certain conditions including expiration or termination of the
applicable waiting period under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as amended. Hubbell is able to utilize
available resources, including cash and commercial paper backed by an
undrawn committed credit facility, to close the transaction.
Additionally, the Company is actively evaluating available alternatives
for permanent financing to best meet its capital structure objectives
going forward.
“We believe Burndy is an outstanding fit with Hubbell. We are very
excited about adding Burndy’s high quality product line to our
portfolio,” said Timothy H. Powers, the Chairman, President and Chief
Executive Officer of Hubbell Incorporated. “Burndy has earned great
respect over the years from distributors and end users and the brand is
a natural complement to Hubbell’s positioning. We look forward to
welcoming management and Burndy’s valued employees to the Hubbell
family. Their emphasis on lean manufacturing and safety, as well as
their strengths in engineering and customer service reinforce some of
Hubbell’s core competencies. Financially, we expect Burndy to contribute
to expanding our operating margin. We also expect to realize both sales
and operating efficiencies as we integrate Burndy.”
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 completion
date of the transaction, the expected effect of the transaction on the
Company’s operating margin 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, Switzerland,
Puerto Rico, Mexico, the People’s Republic of China, Italy, the United
Kingdom, Brazil and Australia. Hubbell also participates in joint
ventures in Taiwan and the People’s Republic of China, and maintains
sales offices in Singapore, the People’s Republic of China, Mexico,
South Korea, and the Middle East. The corporate headquarters is located
in Orange, CT.
Source: Hubbell Incorporated
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Hubbell Incorporated
William R. Sperry, 203-799-4100