Hexatronic agrees to buy Rochester Cable from TE Connectivity
Hexatronic Group AB plans to extend its recent string of acquisitions via an agreement to buy Rochester Cable from TE Connectivity for an enterprise value of $55 million. Hexatronic expects the all-cash deal, which is subject to regulatory approvals, to close by March 31, 2023. Rochester Cable designs and manufactures electro-optical cables for harsh environments.
Culpeper, VA, based Rochester Cable makes armored electro-optical cables designed for the transmission of power, control signals, and data. The cables can operate in water depths to 6,000 m and is typically used to connect sensors, equipment, and remotely operated vehicles. Hextatronic sees the assets as strengthening its hand in the submarine cable space.
“We are happy to have reached an agreement with TE Connectivity to acquire the business activities of Rochester Cable. Rochester Cable is uniquely positioned with its know-how and application expertise, which has been developed as a market leader for decades. The highly skilled team has developed a truly differentiated offering and long-term partnerships with its customers,” commented Henrik Larsson Lyon, CEO of Hexatronic Group.
“Hexatronic has been a supplier of fiber-optic submarine communication cables since the 1990s. Combining the know-how, geographical footprint, and product portfolio of Rochester Cable in the U.S. and Hexatronic submarine business in Sweden provides exciting opportunities for the future,” Lyon concluded.
The acquisition includes the land and buildings of the production sites and office buildings, including a 40,000 square meter production site. Rochester Cable sells principally to U.S. customers but also ships product to the EMEA and APAC regions.
Hextronic says that, in the “broken” fiscal year of October 2021 to September 2022, Rochester Cable is expected to generate a pro forma standalone EBITDA of approximately $8 million. This figure brings the pro forma transaction multiple to approximately 7X EBITDA. The company says the new assets will be immediately accretive to earnings, adding an estimated 0.18 SEK per Hexatronic share in the first full year after close.
Announcement of the Rochester Cable agreement comes approximately a week after Hexatronic announced that it has agreed to buy Impact Data Solutions from STL (see “Hexatronic buys Impact Data Solutions from STL”). In the past two years the company also has purchased Data Center Systems, H. Weterings Galgeweg, Qubix, Baltronic Group OÜ and Toronics Inc., and The Light Brigade.
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Stephen Hardy | Editorial Director and Associate Publisher, Lightwave
Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.
Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.
He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.
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