General Cable Corporation announced it has reached a definitive agreement to sell its North American automotive ignition wire business to Standard Motor Products, Inc. (NYSE: SMP) for cash consideration of approximately $71 million, subject to customary post-closing adjustments. The Company expects to close the sale in the near future. Proceeds will be used to reduce outstanding borrowings.
“We are executing our new strategic roadmap, and a key component of the roadmap is focusing and optimizing our portfolio of businesses,” said Mike McDonnell, President and Chief Executive Officer. “While the automotive ignition wire business has been a strong performing business for us over the years, we determined through our strategic review that it is not aligned with our strategic and financial criteria going forward. As previously communicated, we are focused on growing our businesses in the electric utility, communications and industrial markets where we have leading positions, scale and sustainable profitability.”
General Cable (NYSE:BGC), a Fortune 500 Company, is a leader in the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for the energy, industrial, and communications markets. For more information about General Cable visit our website at www.generalcable.com.