Alcoa is to take complete ownership of Detroit-based AFL Automotive while Fujikura is to take control of Nashville, TN-based AFL telecommunications. Currently, Alcoa and Fujikura jointly own both companies.
The transaction is expected to be implemented through a share exchange by Fujikura of all of its AFL shares for all shares in a new telecommunications subsidiary. The deal is expected to be completed by the Spring of 2005.
“This transaction will enable both Alcoa and Fujikura to focus on their core capabilities,” said Robert T. Alexander, Alcoa Vice President and Chairman of Alcoa Fujikura Ltd. “AFL Automotive is a large part of Alcoa’s approximately $3 billion automotive franchise, and this transaction increases our position in this strategic market. Telecommunications is much more core to Fujikura and strengthens their presence in the US,” said Alexander.
AFL Automotive is a designer, developer and producer of electrical and electronic distribution systems for personal and commercial vehicles. It has approximately 34 locations in 15 countries and 33,500 associates around the world.
For its part, AFL Telecommunications provides fibre optic products, engineering expertise and integrated services to the telecommunications industry. It has approximately 2,000 employees at 19 locations in three countries. Headquartered in Nashville, additional facilities are located throughout the United States, in Monterrey, Mexico and the UK.