Coleman Cable Inc., Waukegan, Ill., agreed to acquire the electrical products business of Katy Industries Inc. for $45 million in cash.
Katy Industries operates in the United States as Woods Industries Inc. and in Canada as Woods Industries (Canada) Inc. The Woods U.S. business is headquartered in Indianapolis and distributes consumer electrical corded products and electrical accessories. Woods U.S. products include outdoor and indoor extension cords, work lights, surge protectors and power strips. The products are sold primarily through national home improvement, mass merchant, hardware and other retail outlets in the United States.
Woods (Industries) Canada distributes consumer electrical corded products and electrical accessories. In addition to the products listed above for Woods U.S., Woods Canada’s primary product offerings include garden lighting and timing. These products are sold primarily through major home improvement, mass merchant, hardware and other retail outlets in Canada.
“We believe this acquisition significantly enhances our market position in the Canadian consumer channel and also establishes a broader platform for penetrating other distribution channels and OEMs in Canada,” Gary Yetman, president and CEO of Coleman Cable, said in a conference call to investors.
“We also solidify our position as the leading supplier in the electrical cable and wire products in the U.S. consumer and industrial channels, while significantly expanding our engineering and sourcing platform in Asia.”
Last April, Coleman Cable announced its acquisition of Copperfield LLC. That acquisition broadened the scope of Coleman Cable’s product offering, strengthened its strategic relationships with industrial distributors and significantly increased its OEM customer base, said Yetman.
“We have grown from annual sales of $450 million to over $900 million with the addition of Copperfield and will grow to be over $1 billion with the acquisition of Woods,” said Yetman.
The closing of the transaction is subject to customary closing conditions and is expected to close Nov. 30.