Belden Inc., a global provider of signal transmission solutions for mission-critical applications, has acquired privately held PPC, a provider of broadband connectivity solutions headquartered in Syracuse, NY, for $515.7 million.
A full discussion, including strategic rationale and potential impact to 2013 results, was provided during Belden's Investor Day event. A replay of the entire event can be accessed at investor.belden.com.
- Combined company will be a leader in broadband connectivity;
- The acquisition significantly enhances Belden's Broadcast Solutions platform and increases exposure to attractive end markets;
- With operating margins above 22 percent, this transaction is accretive to Belden's consolidated operating results; and
- Accretive to adjusted earnings per share in 2013 by $0.54.
"This acquisition is a wonderful example of our business transformation and highlights our strategic focus on building global business platforms with strong financial attributes, serving attractive end markets," said John Stroup, president and CEO of Belden. "PPC provides innovative products that enable our customers to profitably grow their business by delivering higher bandwidth and enhanced services, with fewer service calls. Belden and PPC will provide unique end-to-end solutions for these customers, and I am excited about the opportunity ahead of us."
The company expects revenue to be $500 to $510 million for the fourth quarter and $1.94 to $1.95 billion for the full year ending December 31. The company also expects adjusted income from continuing operations per diluted share to be $0.72 to $0.77 for the fourth quarter and $3.00 to $3.05 for the full year ending December 31.