LS Cable announced Wednesday that it has agreed to acquire Superior Essex of the U.S., the largest wire and cable maker in North America and 10th largest in the world. The acquisition is expected to help the Korean company leap from the world’s seventh largest wire and cable manufacturer to third. LS Cable will set up a holding company in the U.S. with W356 billion (US$1=W1,030) and use that to publicly purchase stocks for a month under a deal with Superior Essex.
Atlanta-based Superior Essex posted US$2.99 billion in revenues and $130 million in operating profit last year. It is one of the world’s leading makers of winding wire, a type of insulated copper or aluminum wire.
Based on 2007 performance, the combined entity would rank third in the global wire and cable market with revenues of W6.6 trillion and operating profit of W280 billion. The reigning market leader is Japan’s Sumitomo Electric Industries, followed by France’s Nexans.
