Belden Inc., a St. Louis-based maker of industrial cable and other signal transmission products, said this week that it has entered a definitive agreement to purchase Hirschmann Automation and Control GmbH (HAC), a Germany-based supplier of industrial Ethernet solutions.
Belden said it will purchase HAC, together with certain affiliates, from HgCapital, a European private equity investor, for about $260 million in cash. The deal is expected to close in about 45 days.
“The acquisition of Hirschmann is a major achievement in our pursuit to expand our business in desirable end-markets, beyond cable, to signal transmission solutions,” said John Stroup, president and chief executive officer of Belden. “In addition to having a broad portfolio of connectors for the industrial market, Hirschmann is the undisputed leader in the application of industrial Ethernet solutions.”
According to a fact sheet posted on the Belden Web site, Hirschmann has the leading global market share in rail-mounted Industrial Ethernet devices, as well as a strong position in industrial connectivity within the European market. HAC had revenues in 2006 of approximately $250 million. Belden had revenues $1.35 billion in 2005, and reported revenues of $1.12 billion through the first three quarters of 2006.
HAC headquarters are in Neckartenzlingen, Germany. The company has two production locations in Germany, and three manufacturing joint ventures in China. HAC is led by Reinhard Sitzmann, chief executive officer, who will continue in that role.
“In the short run, we see a tremendous opportunity to use Belden’s global reach to accelerate HAC’s revenue growth in North America and Asia,” said Stroup. “In the long run, we expect to thoughtfully integrate the capabilities of Hirschmann and Belden to create products and services for the industrial market that are preferred worldwide.”
According to the acquisition fact sheet, the HAC purchase fits Belden’s strategic plan in the following ways: it expands Belden’s overall connectivity portfolio; it improves market access; it provides solutions for Belden’s industrial customers; it improves Belden’s position in emerging markets; it opens opportunities in wireless and fiber optics in the industrial space.
Hirschmann Automation and Control GmbH