Apr 4 2006
Phelps Dodge has announced that it has completed the sale of Phelps Dodge High Performance Conductors of SC & GA, Inc. (HPC) to International Wire Group (IWG). Under the agreement, which was announced March 7, 2006, IWG purchased HPC's manufacturing operations in Inman, S.C., and Trenton, Ga. The transaction does not include a Phelps Dodge facility at Elizabeth, N.J., that will become a unit of the Phelps Dodge Smelting, Refining and Rod Group.
IWG purchased the stock of HPC, including certain copper inventory, for approximately $49 million in cash. This figure includes a base purchase price of approximately $47 million and a working capital adjustment estimated at closing to be approximately $2 million. Phelps Dodge also will receive a contingent payment of up to $3 million based on HPC's 2006 results.
Phelps Dodge estimates special, net after-tax losses of approximately $6 million associated with this transaction, which will be recognized in the 2006 first quarter and consist of a loss on disposal of approximately $3 million and transaction and employee-related costs of approximately $3 million.
HPC is a manufacturer of specialty high-performance conductors for the aerospace, medical, automotive, computer, telecommunications, mass transportation, geophysical and electronics markets.
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