CAMDEN, N.Y., 7 April 2006. International Wire Group Inc. has acquired Phelps Dodge High Performance Conductors of SC & GA Inc. from Phelps Dodge Corporation. With the closing of the transaction, Phelps Dodge High Performance Conductors of SC & GA, Inc. changed its name to IWG High Performance Conductors Inc.
International Wire Group Inc. acquired all of the outstanding common stock of HPC for $42 million, plus a working capital adjustment estimated at closing to be $2 million. Additionally, IWG purchased the copper inventory held on consignment by HPC from PD for approximately $5 million. IWG has also agreed to a contingency payment of up to $3 million based on HPC's 2006 Earnings Before Interest, Taxes, Depreciation, and Amortization.
HPC is a manufacturer of specialty high-performance conductors for aerospace, medical, automotive, computer, telecommunications, mass transportation, geophysical, and electronics markets. HPC has manufacturing operations in Inman, South Carolina, and Trenton, Georgia. For the fiscal year ended December 31, 2005, HPC's unaudited sales were $85.5 million.
"The longer term trends supporting the need for conductor wire for the aerospace and medical equipment market segments are particularly compelling," says Mark Holdsworth, chairman of the Board of Directors of IWG.
Rodney D. Kent, chief executive officer, adds, "This acquisition expands our product offerings into silver and nickel plated products and allows us to sell into new markets, including aerospace and medical."
