General Cable acquires majority interest in Procables

General Cable Corporation has announced it will acquire a majority interest (60%) in Procables SA for $45 million. The Sredni Group will maintain a 40% interest in the business.

Procables has two manufacturing facilities in Bogota and Barranquilla, producing a range of wire and cable products, including low- and medium-voltage power cables, building wire, industrial, communications, bare aluminium conductors, operating copper and aluminium rod mills. The company reported a 2011 revenue of US$120 million.

“This transaction greatly enhances our presence in this strategically important market in the Andean Region, further solidifying our geographic coverage throughout the Americas, which is one of the most extensive in the wire and cable industry,” said Gregory B Kenny, President and CEO of General Cable.

Kenny said Colombia has one of the largest economies in Latin America and represents an opportunity for growth. Investments in housing and electrical infrastructure and oil and mining sector developments will see the Colombian economy expand and drive greater demand for wire and cable, Kenny said.