Mar 8 2006
Phelps Dodge has announced that it has agreed to sell Phelps Dodge High Performance Conductors of SC & GA, Inc. (HPC) to International Wire Group (IWG). Under the agreement, IWG will purchase the stock of HPC, including certain copper inventory, for approximately $47 million in cash, subject to a working capital adjustment at the time of closing, plus a contingent payment to Phelps Dodge of up to $3 million based on HPC's 2006 results. Phelps Dodge expects to record a special, net after-tax loss on the transaction of approximately $5 million. The sale is subject to certain regulatory approvals.
The sale will include HPC manufacturing operations in Inman, S.C., and Trenton, Ga. The transaction will not include a Phelps Dodge facility at Elizabeth, N.J., which will become a unit of the Phelps Dodge Smelting, Refining and Rod Group. Under the agreement, Phelps Dodge will continue to be a primary supplier of certain copper alloys to IWG. Phelps Dodge also is a primary supplier of copper rod to IWG.
HPC is a manufacturer of specialty high-performance conductors for the aerospace, medical, automotive, computer, telecommunications, mass transportation, geophysical and electronics markets.
http://www.phelpsdodge.com/