ADC announced yesterday an agreement to acquire the KRONE Group, a global supplier of copper and fibre-based connectivity solutions and cabling products, from GenTek Inc.
The proposed acquisition is valued at approximately $350 million. ADC will pay approximately $291 million in cash and assume liabilities consisting mainly of KRONE’s pension obligation for its German workforce.
“ADC’s new Global Network Infrastructure strategy includes the products, systems and services that provide the foundation for every type of communications network over every medium: fibre, copper, coaxial, and wireless,” said Robert E. Switz, president and CEO of ADC.
“The intent of our strategy is to enable all of our customers – wireline, wireless, cable, broadcast, and enterprise – to profitably deploy every type of broadband service offering and application.”
The transaction is expected to close before the end of July, 2004. Closing of the transaction is subject to approval by necessary regulatory authorities as well as customary closing conditions.