Smith, Gambrell & Russell (SGR) represented Southwire Company in its purchase of the Canadian Cable Tech business of Noma Company, a subsidiary of GenTek, Inc. The business, headquartered in Stouffville, Ontario, Canada, manufactures wire and cable products used in the residential, commercial construction and original equipment manufacturer (OEM) markets. SGR attorneys who represented Southwire on the deal were John Ethridge, Eric Mandus, Ann Murray, Phillip Hoover and Julie Sebastian.
Last year, Southwire announced it would invest an additional $250 million in new facilities and equipment. This Cable Tech acquisition is part of that plan, further demonstrating Southwire’s commitment to the Canadian and North American wire and cable markets. Along with future investments, this acquisition provides an important manufacturing presence in Canada, while enhancing Southwire’s product offerings. It also builds on Southwire’s industry leadership in fill rates and lead times.
“[This acquisition] will further extend Southwire’s position in Canada, and it is continuing evidence of our commitment to remain a leader in North American wire and cable power delivery products,” said Southwire President and CEO Stu Thorn.
“The Cable Tech acquisition helps better position Southwire for long-term growth with all our North American partners and gets us closer to those in Canada,” Thorn added. “This latest stake in the ground shows our customers just how committed we are to the Canadian market. At Southwire, we plan for the next generation — and we firmly believe that growing along side our Canadian customers will create long-term value.”
“In addition, Southwire’s acquisition of the Canadian Cable Tech business further strengthens our product offering and customer service capabilities in the North American OEM Market – a key growth area for Southwire Company,” Thorn said.
The Stouffville manufacturing facility will be supported by Southwire’s existing supply chain infrastructure. In addition, other Southwire manufacturing facilities will provide the Canadian market with products not manufactured in Stouffville.
“It’s very important that Southwire continues to get closer to its customers in Canada and remain sensitive to their regional needs,” said Eric Schmidt, senior vice president of Southwire’s Canadian Electrical Division. “Exceeding our customers’ expectations has been a key to our success. We must continually focus on what they think is important and will truly deliver value. Our customers expect to grow and we must grow with them by offering a compelling competitive advantage in the marketplace.”
“This acquisition is yet another example of Southwire’s commitment to the Canadian market and to customers who want innovative, high-quality products with superior service capabilities from the industry’s lowest cost provider,” added Schmidt.