Southwire Co, one of the biggest U.S. electrical wire and cable makers, has agreed to purchase smaller U.S. rival Coleman Cable Inc for about $492 million, it said on Friday, expanding its footprint in the North American market.The deal will increase Southwire's share of the automotive, construction and power market and give the Carrollton, Georgia-based company access to new products such as wiring for power transformers.Privately held Southwire's offer of $26.25 per share is at a premium of about 7 percent to Coleman stock's Thursday close.Including Coleman's debt, the deal is valued at about $786 million.
Coleman Cable, Inc. (Coleman) is a designer, developer, manufacturer and supplier of electrical wire and cable products for consumer, commercial and industrial applications, with operations primarily in the United States and in Honduras and Canada. Shares of CCIX traded higher by 7.44% or $1.82/share to $26.29. In the past year, the shares have traded as low as $9.04 and as high as $26.50. On average, 77223 shares of CCIX exchange hands on a given day and today's volume is recorded at 1038531.
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