ADC agreed to acquire the KRONE Group, a global supplier of copper- and fiber-based cabling products, from GenTek Inc.. The deal was valued at approximately $350 million, of which ADC will pay cash of approximately $291 million and assume certain defined liabilities consisting principally of KRONE’s pension obligation for its German workforce.
ADC said the KRONE acquisition makes “a perfect fit” with its new strategic initiative to become the leader in global network infrastructure solutions and services. The combined company is expected to have a worldwide market leadership position in copper and fiber central office infrastructure cabling solutions, as well as a leading market share position in enterprise structured cabling systems.
KRONE has more than 2,000 employees, eight factories and five research and development centers around the world. Based on unaudited numbers, KRONE had sales of $316 million, operating income of $13 million before restructuring and impairment charges, and depreciation and amortization expense of $14 million in the year ended 31-Dec-2003 compared to 2002 annual sales of $267 million resulting in an operating loss of $10 million before restructuring and impairment charges, and depreciation and amortization expense of $14 million. http://www.adc.comhttp://www.krone.com
