Sweden’s Hexatronic Group AB (Hexatronic) has signed a binding asset purchase agreement to acquire all business activities of Rochester Cable from TE Connectivity (TE).

Per an announcement issued by Hexatronic, it will pay $55 million to acquire Rochester Cable, a U.S. designer and manufacturer of cables based in Culpeper, Virginia. The company has 130 employees and a production site of some 40,000 sq m. The deal, expected to close by the end of next March, will include all the land and buildings for the operations.

The agreement broadens Hexatronic’s offering within fiber optic submarine communication cables to include dynamic working cables that can transmit electrical signals and power in addition to transmitting optical signals. Rochester Cable’s electro-optical cables for operation in harsh environments are highly engineered to meet specific requirements in demanding industries such as oil and gas, sensing, defense, oceanographic and subsea applications. Product sales are mainly in the U.S. but also in the EMEA and APAC regions.

Over the last decade, TE significantly invested in increasing capacity, and the production facility provides many possibilities for further growth. The acquisition will include the land and buildings of the production sites and office buildings. Completion of the transaction is subject to regulatory approvals and is expected to close no later than March 31, 2023.

“We are happy to have reached an agreement with TE Connectivity ... (as) Rochester Cable is uniquely positioned with its know-how and application expertise, which has been developed as a market leader for decades,” said Hexatronic Group CEO Henrik Larsson Lyon.

Hexatronic has been a supplier of fiber optic submarine communication cables since the 1990s. Combining the know-how, geographical footprint, and product portfolio of Rochester Cable in the U.S. and Hexatronic submarine business in Sweden provides exciting opportunities for the future,” said Hexatronic Group CEO Henrik Larsson Lyon.