Southwire To Buy Coleman Cable For $492 Mln

(RTTNews) - Southwire Company, a privately held wire and cable producers, has agreed to buy Coleman Cable Inc. (CCIX) for $492 million, as the company tries to enhance its market presence.

Southwire will pay shareholders of Coleman Cable $26.25 a share in cash, which represents a premium of about 16.6 percent to the closing share price on October 29, 2013, the last trading day prior to media reports about a potential transaction. Shares of Coleman are currently up seven percent on the Nasdaq.

The transaction, which values Coleman at about $786 million, including the assumption of $294 million in net debt, was unanimously approved by the Coleman board of directors.

The deal is expected to close in the first quarter, subject to customary closing conditions. Following the completion, Coleman's management team will join the Southwire organization.

CCIX is currently trading at $26.25, up $1.78 or 7.29%, on the Nasdaq.