Cerberus Capital Management completed its previously-announced acquisition of SubCom from TE Connectivity for $325 million in cash.
SubCom, which is based in Eatontown, New Jersey, designs, manufactures, deploys and maintains subsea fiber optic cable systems. To date, SubCom has completed more than 100 cable systems and deployed over 610,000 kilometers of cable through its eight cable ships. The division has 1,400 employees.
SubCom business was expected generate approximately $700 million in sales in fiscal year 2018 and was marginally profitable.
TE Connectivity said it will use the cash for share repurchases, and said the divestiture will improve its growth profile, reduce cyclicality, and result in higher margins and a greater return on investment.
