Belden to Pay $78 Million for Thomas & Betts Communications Business

Thomas & Betts Corp. (T&B), Memphis, said it has a definitive agreement to sell its communications products business to Belden Inc., St. Louis, for $78 million in cash.

The business, which is included in the T&B's global Electrical segment, generated approximately $45 million in sales for the first nine months of 2010. The transaction is expected to be completed by year-end 2010, subject to regulatory approval.

For Belden, the acquisition will further strengthen its position as an end-to-end solution provider within the broadband/CATV, security and audio/video markets. The business unit includes Snap-N-Seal drop connectors, LRC hardline connectors, Diamond hardware and grounding products, and telecom enclosures and connectors, including the Kold-N-Klose enclosure system. By adding these established brands and radio frequency (RF) connectors to its portfolio of audio, video and security cables, Belden said it will expand its end-to-end solution offering and leverage its existing channels.

The sale includes, among other assets, two manufacturing facilities, the above-mentioned trade names and associated intellectual property.

“The Thomas & Betts Communications Products Business has an experienced management team, recognized brands, plus a reputation for superior product quality, innovation, and best-in-class manufacturing capabilities,” said John Stroup, president and CEO of Belden. “We intend to invest in the business to leverage these proven strengths and expand our combined presence in core markets within North America, as well as other geographies where we already have commercial infrastructure in place.”

“This was an opportune time to divest this non-strategic business,” said Dominic Pileggi, chairman and chief executive officer of Thomas & Betts. “We continue to focus on our strategy of enhancing our core electrical products portfolio and expanding our global market presence as demonstrated by our strategic acquisitions earlier this year.”

It is expected that, after allocation of segment goodwill, the divestiture will result in an after-tax, non-cash book loss of approximately $10 million for Thomas & Betts. Belden will fund the purchase price with cash on hand, and expects the businesses to add a nickel per diluted share to its income for 2011, the company said.