Platinum Equity to acquire Alcan Cable from Rio Tinto

Platinum Equity, Los Angeles, has signed a definitive agreement to purchase controlling interest in the Atlanta-based Alcan Cable division of Rio Tinto. Alcan Cable, a division of the Alcan Engineered Products business, is a manufacturer of aluminum cable products. Financial terms of the acquisition were not disclosed.

Platinum will assume management control of Alcan Cable and hold a 56 percent ownership stake in the company. Rio Tinto will retain a 44 percent minority interest and will remain a key supplier of aluminum rod and molten aluminum to the business. Alcan serves utility transmission and distribution and residential and non-residential construction markets throughout North America. The business has seven production sites in the U.S., Canada and China.

“Platinum will acquire a majority stake in a non-core asset, execute a carve-out, transition the business to a standalone entity, and provide Rio Tinto an opportunity to participate in the future recovery of the business without having to manage that recovery themselves,” said Brian Wall, the partner at Platinum who is leading the transaction.