Belden to acquire Hirschmann Automation and Control
Belden will purchase Hirschmann Automation and Control (HCA) together with certain affiliates from HgCapital, a European private equity investor, for a cash purchase price of approximately $260 million. HAC is a supplier of Industrial Ethernet solutions and industrial connectivity. HAC is led by Reinhard Sitzmann, chief executive officer, who will continue in that role. The company has its headquarters in Neckartenzlingen, Germany, two production locations in Germany, and three manufacturing joint ventures in China. In addition to its Industrial Ethernet and connectivity product lines, HAC has a leading position in electronic control and safety systems for cranes and other load-bearing equipment. HAC had 2006 revenues of approximately $250 million and employs 750 associates. Apart from the cash purchase price and as part of the consideration for the acquisition, Belden will be responsible for certain obligations, including pension liabilities, of approximately $60 million, to be funded in future years. The companies anticipate the transaction to close in approximately 45 days. Belden expects that the transaction will be accretive to 2007 earnings.