Hitachi Metals Limited (HML) has agreed to an acquisition offer—from a consortium led by Bain Capital, a private equity firm—that includes Hitachi Cable America (HCA).
A statement from HCA said that the Bain-led consortium “recognizes HML’s R&D leadership, deep relationships with industry-leading customers, and technological superiority in each of its business units. Bain plans to support the company by enhancing our competitiveness in high-growth sectors.” No plant closures are expected, and HCA “will remain a U.S. company.”
The deal was described as a positive step for HCA, which has continued to invest in manufacturing capabilities, machinery, advanced quality control techniques, R&D (see p. 38), technical expertise and capacity expansions. “We stand by our commitment to manufacturing premium products, and the strong financial profile backing of Bain Consortium will empower us to accelerate investment efforts.”
HCA includes three divisions: the Performance Cable Systems & Materials Division, with 240 employees; the Automotive Products Division, with 100 employees; and the High Performance Medical Solutions Division, which has 180 employees. The Performance Cable division’s 300,000-sq-ft plant in Manchester, New Hampshire, designs and produces advanced copper and fiber optic based communication cable.
The agreement will see a branding away from the HCA name on Jan. 4, 2023, into Proterial Cable America, a portmanteau of the words “professional” and “material.”
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.
Bridon-Bekaert Ropes Group (BBRG) announced plans to close their manufacturing plant in Gelsenkirchen, Germany, to improve the business portfolio of the European rope activities.
A press release said that Bekaert has decided to consolidate the BBRG’s European ropes manufacturing platform in the U.K. and phase out the production activities in Gelsenkirchen by the end of 2023. The business portfolio of the European rope activities will further be improved by exiting lower-margin market segments and focusing on the segments with growth perspectives and higher value creation potential.
The competitive position of the Gelsenkirchen plant has been under pressure and the current business level no longer provides the ability to generate a financially sustainable performance. The decision to close the loss-making plant will affect 77 employees.
All European steel rope manufacturing activities will be centralized in the Doncaster and Newcastle production sites to ensure long-term competitiveness by better leveraging efficiencies and by improving the business portfolio. “The management regrets the personal consequences of the restructuring decisions and will diligently evaluate the options to mitigate the social impact for the affected employees,” the release said.
Bridon-Bekaert The Ropes Group (BBRG), was formed in 2016 by the addition of Bridon Group to Bekaert’s steel ropes and advanced cords businesses. The entity has a global footprint that includes 16 manufacturing locations (including Gelsenkirchen), providing strong positions in the U.S. and Europe, Latin America, Canada and Australia.
LS Cable & System announced on Oct. 20 that it has won a cable contract valued at approximately $166 million to supply the Boreas wind farm in the North Sea of the U.K., the largest ever order from Europe received by a South Korean cable company.
Per the announcement, the Boreas offshore wind farm is being developed by Sweden’s state-owned power company Vattenfall, near Norfolk in the United Kingdom. When completed in 2026, it will produce about 1.3 GW of electric power, equivalent to one nuclear power plant.
LS Cable & System will supply 320 kV ultra-high voltage direct current (HVDC) submarine and underground cables for the wind farm. It will mark the company’s first supply of HVDC cables that use cross-linked polyethylene (XLPE) as an insulating material.
XLPE cables are becoming the mainstream in renewable energy projects in Europe and North America due to their convenient installation and connection and easy maintenance. However, so far, only a few companies have succeeded in developing them. The latest order is expected to help LS Cable & System accelerate its penetration of the XLPE cable market. The company plans to expedite its market expansion in Europe as well as North America and Asia where demand for XLPE cables is growing rapidly.
The Wire & Cable Manufacturers Alliance (WCMA) will hold its annual luncheon meeting, which will have a featured speaker, much networking potential and support a good cause, on Thursday, Dec. 1.
A press release said that registration is open for the event, which will be held from 11 am to 3 pm at a new location: the Hartford Marriott Downtown, 300 Capitol Blvd., Hartford, Connecticut. The meeting will include an economic review by John Traynor, Cambridge Trust, a recognized economist who has appeared on Fox News and CNN and in The Wall Street Journal. He has also been a much-appreciated speaker at WCMA’s annual meetings, speaking numerous times.
WCMA will continue its networking session for Young Professionals and Mentors from 2 pm to 3 pm, with additional presentations planned.
As noted above, registration is open, and attendees are encouraged to support the WCMA’s annual Toys for Tots donation and/or Industry scholarships for Wire Association, IWCS and The Copper Club.
Lodging is available at The Hartford Marriott Downtown at discounted room rate of $125. The cut-off for that offer is Nov. 28. Registrations can be made at: https://wcmainc.org/page/annual-meeting-and-holiday-luncheon.
For more details, call WCMA Executive Director Executive Director Ed Fenton at tel. 860-841-7720
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