Nexans signs and closes an agreement with Superior Essex for the sale of its US based winding wires business
Paris, September 8, 2004 - Nexans announced today that it has signed and closed an agreement with the American company Superior Essex for the sale of its US based winding wires business currently operated by Nexans in its LaGrange plant (Kentucky, USA). The amount of this transaction is approximately 9 million euros, plus approximately 6 million euros in respect of accounts receivable due from customers, net of payables, to be realized by Nexans, making a total of 15 million euros.
The business transferred to Superior represents on an annual basis, approximately 35 millions euros in sales (calculated at standard copper cost).
The agreement signed with Superior Essex is consistent with the announcement made by Nexans at the beginning of the year that it was considering the sale of its winding wires business.
In North America, Nexans will continue to operate its facility located in Simcoe, Ontario, Canada, and will continue to supply North American customers with its specialty winding wire products.
Superior Essex Inc. is one of the largest North American wire and cable manufacturers and among the largest wire and cable manufacturers in the world. Superior Essex manufactures a broad portfolio of wire and cable products with primary applications in the communications, magnet wire, and related distribution markets. The Company is a leading manufacturer and supplier of copper and fiber optic communications wire and cable products to telephone companies, distributors and system integrators; a leading manufacturer and supplier of magnet wire and fabricated insulation products to major original equipment manufacturers (OEM) for use in motors, transformers, generators and electrical controls; and a distributor of magnet wire, insulation, and related products to smaller OEMs and motor repair facilities.