Southwire To Acquire Coleman Cable In $786 Mln Deal - Quick Facts

(RTTNews) - Southwire Co. agreed to acquire Coleman Cable, Inc. (CCIX) ("Coleman") for $26.25 per share in an all-cash deal valued at about $786 million, including the assumption of $294 million in net debt. The deal, unanimously approved by the Coleman board of directors, is currently expected to close in the first quarter of 2014.

The offer price represents a 16.6 percent premium over Coleman's closing share price of $22.52 on October 29, 2013, the last trading day prior to media reports about a potential transaction.

The closure of the deal is primarily subject to the minimum tender of at least a majority of outstanding Coleman shares on a fully diluted basis. The tender offer is not subject to a financing condition.

Southwire has received debt financing commitments that have been arranged by Bank of America Merrill Lynch, Wells Fargo Bank, N.A., BMO Capital Markets and Macquarie Capital, in connection with the financing of the transaction, which are subject to customary terms and conditions.

Until the merger is complete, both Southwire and Coleman will continue to operate as separate companies. Following the transaction's closing, Coleman's management team will join the Southwire organization, and Southwire expects to maintain a significant presence in Waukegan.