CommScope take over Andrew Corp (Heliax)
for
$2.6 bn
Andrew Corporation produce a wide range of RF equipment
including Heliax cable and connectors which
are popular with Radio Amateurs for the UHF and Microwave bands.
They have been taken over by Commscope Inc.
John Walko EE Times Europe http://www.eetimes.com/
(06/29/2007 7:31 AM EDT)
LONDON — Having rejected a $1.5 billion offer last year, CommScope
Inc. has succeeded with a $2.6 billion offer for wireless infrastructure
rival Andrew Corporation.
Last August the CommScope offer was rejected by the Westchester, Illinois
based antenna specialist as "wholly inadequate." Andrew also
rebuffed at the same time the advances of another communications equipment
conglomerate, ADC Telecommunications.
Hickory, N.C.-based CommScope said it will pay $15 a share for Andrew,
which represents a 16 percent premium on Andrews closing stock price.
At least 90 percent of the payment will be cash.
The transaction is expected to close by the end of 2007.
The combined company will have more than 2,200 global patents and pending
patent applications and approximately 16,000 employees serving more than
130 countries, with several R&D and manufacturing facilities in Europe.
Based on CommScope's and Andrew's results for fiscal year 2006, on a
pro forma basis, the combined companies would have had sales of approximately
$3.8 billion, about 35 percent in wireless antenna and cable products;
29 percent in carrier and network solutions; 21 percent in enterprise
products; and 15 percent in broadband/cable television solutions.
Just over 57 percent of the revenues would be in North America; 24 percent
in Europe, the Middle East and Africa; 12 percent in Asia/Pacific Rim;
and 7 percent in Latin America.
The companies said the deal would help them cut manufacturing costs and
diversify their customer base.
They added the combination of the two would help trim procurement costs
for copper and plastic, since both make coaxial cables, used for cable
TV as well as high-speed Internet services.
They also anticipate being able to make savings, excluding one-time items,
of around $90 million to $100 million in the second year after the deal
is completed. About $50 million to $60 million of savings are expected
in the first full year.
Following the close of the transaction, Andrew will become a wholly-owned
subsidiary of CommScope. Frank Drendel will remain Chairman and CEO of
CommScope, and CommScope will retain its global headquarters in Hickory,
North
Carolina. The combined company said it plans to maintain its Chicago-area
presence, and build upon Andrew's manufacturing and office facility in
Joliet, Illinois.
In Europe, originally producing multi-band microwave antennas, Andrew's
Lochgelly, Scotland facility now manufactures foam coaxial cable, microwave
transmission lines, cable assemblies, and connectors mainly for the European
and Middle Eastern markets. The Brno, Czech Republic plant makes base
station and terrestrial microwave antennas and cable assemblies for the
European market.
Most of Andrew Corp's in-building and distributed antenna systems are
made in and distributed from European plants in Buchdorf, Germany; Capriate
and Faenza, Italy; and Pardubice, Czech Republic.
Andrew Corporation
http://www.andrew.com/
Commscope Inc
http://www.commscope.com/
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