Belden Inc., a provider of signal transmission solutions for mission critical applications, entered into a definitive agreement to acquire the Thomas & Betts Communications Products Business for $78 million in cash.
This acquisition will further strengthen Belden's position as an end-to-end solution provider within the broadband/CATV, security, and audio/video markets, the company said. This business includes Snap-N-Seal<sup>®</sup> drop connectors, LRC<sup>®</sup> hardline connectors, Diamond<sup>®</sup> hardware & grounding products, and telecom enclosures & connectors, including the Kold-N-Klose<sup>®</sup> enclosure system. By adding these established brands and market-leading radio frequency (RF) connectors to its portfolio of audio, video and security cables, Belden will expand its end-to-end solution offering and leverage its existing channels, according to the company.
The acquisition is subject to regulatory review under the Hart-Scott-Rodino Antitrust Improvement Act and is expected to be completed by calendar year-end 2010. Belden will fund the purchase price with cash on hand. Belden expects the business will contribute $0.05 in income from continuing operations per diluted share in fiscal year 2011.
“The Thomas & Betts Communications Products Business has an experienced management team, recognized brands, plus a reputation for superior product quality, innovation, and best-in-class manufacturing capabilities,” said John Stroup, president and CEO of Belden Inc. “We intend to invest in the business to leverage these proven strengths and expand our combined presence in core markets within North America, as well as other geographies where we already have commercial infrastructure in place.”