Belden Acquires GarrettCom, Thomas & Betts Communications Products
Belden Inc., a provider of signal transmission solutions for mission-critical applications, entered into definitive agreements to acquire the Thomas & Betts Communications Products Business and GarrettCom, a provider of advanced industrial networking products and smart grid solutions.
The Thomas & Betts 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® drop connectors, LRC® hardline connectors, Diamond® hardware & grounding products, and telecom enclosures & connectors, including the Kold-N-Klose® 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 of $78 million 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 acquisition of GarrettCom extends Belden’s leadership position as an industrial networking solutions provider by adding a recognized leader in industrial grade switches, routers, converters, serial communications and security software, the company said.
GarrettCom’s premium hardened networking products complement Belden’s existing portfolio of Hirschmann® brand high-availability industrial networking solutions and will enable Belden to address the growing needs of customers across a more diverse set of end market applications. GarrettCom sells its products into power utilities, surveillance and security, transportation, specialty industrial automation, telecommunications and similar demanding harsh-environment verticals through a network of system integrators, OEMs and international distributors.
Belden will fund the purchase price with cash on hand and expects the acquisition to be completed by calendar year-end 2010. Belden expects the business will be break-even on a GAAP basis in fiscal year 2011.