European private equity investor HgCapital sold Hirschmann Automation and Control (PAT), Chambersburg, Pa., last week to St. Louis, Mo.-based Belden, a leading manufacturer of signal transmissions products in the data networking field, for $260 million.
The companies anticipate the transaction to close in approximately 45 days. Apart from the cash purchase price and as part of the consideration for the acquisition, Belden will be responsible for certain obligations, including pension liabilities, of approximately $60 million, to be funded in future years. Following the acquisition, Hirschmann Automation and Control will continue to be run by the current managing director, Reinhard Sitzmann.
HgCapital acquired Hirschmann Group of Germany in February 2004 for $149 million as part of a management buyout. Since then, two non-core subsidiaries have been sold, operational improvements have been made to develop efficiencies across the group, and the company has directed its investments toward new product development. As part of the reorganization, a new group structure was established, creating two separate companies: Hirschmann Automation and Control GmbH and Hirschmann Car Communication GmbH. In 2006, Hirschmann Automation and Control reported revenues of approximately $250 million. The company has 750 employees.
According to Belden President and Chief Executive Officer John Stroup, "The acquisition of Hirschmann is a major achievement in our pursuit to expand our business in desirable end-markets, beyond cable, to signal transmission solutions.” In the short term, Stroup said that Belden's global reach will provide an opportunity to accelerate Hirschmann Automation and Control's revenue growth in North America and Asia, and in the long run, he expects to integrate the capabilities of Hirschmann and Belden to create products and services for the worldwide industrial market.
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