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News Release
EXHIBIT 99.1
FROM: BELDEN
DEE JOHNSON
314.854.8054
FOR IMMEDIATE RELEASE -- JANUARY 30, 2007
BELDEN AGREES TO ACQUIRE HIRSCHMANN AUTOMATION AND CONTROL
Consistent with the strategic goal of expanding its connectivity offering in
markets where Belden is the preferred cable supplier, Belden is acquiring a
company with wide-ranging competence and leading market positions in digital
communication and connectivity for industrial automation and large-scale public
infrastructure.
St. Louis, Missouri -- Belden (NYSE:BDC) has entered into a definitive agreement
to purchase Hirschmann Automation and Control GmbH (together with certain
affiliates "HAC") from HgCapital, a European private equity investor, for a cash
purchase price of approximately $260 million. HAC is a leading supplier of
Industrial Ethernet solutions and industrial connectivity.
John Stroup, president and chief executive officer of Belden, said: "The
acquisition of Hirschmann is a major achievement in our pursuit to expand our
business in desirable end-markets, beyond cable, to signal transmission
solutions. In addition to having a broad portfolio of connectors for the
industrial market, Hirschmann is the undisputed leader in the application of
Industrial Ethernet solutions. We couldn't be more excited to have Hirschmann as
part of the Belden family.
"Hirschmann has leveraged its knowledge of industrial automation into a leading
position in digital communication for manufacturing and large-scale
infrastructure projects," Mr. Stroup continued. "Industrial Ethernet is an open
system that allows the integration of a wide variety of equipment and provides
for an interface between the industrial network and the enterprise network. The
adoption of Industrial Ethernet among our customers is in early stages but is
increasing rapidly because of these compelling advantages.
"In the short run," he continued, "we see a tremendous opportunity to use
Belden's global reach to accelerate HAC's revenue growth in North America and
Asia. In the long run, we expect to thoughtfully integrate the capabilities of
Hirschmann and Belden to create products and services for the industrial market
that are preferred worldwide.
"We continue to investigate opportunities that advance our presence in emerging
geographies and expand our solutions beyond copper cable," he concluded.
HAC is led by Reinhard Sitzmann, chief executive officer, who will continue in
that role. The company has its headquarters in Neckartenzlingen, Germany, two
production locations in Germany, and three manufacturing joint ventures in
China. In addition to its Industrial Ethernet and connectivity product lines,
HAC has a leading position in electronic control and safety systems for cranes
and other load-bearing equipment. HAC had 2006 revenues of approximately $250
million and employs 750 associates.
Mr. Sitzmann said, "HAC and Belden have highly complementary products and market
positions. Belden will be able to strengthen HAC's market presence in North
America and Asia. We welcome this combination with Belden and look forward to a
creative and dynamic future."
Apart from the cash purchase price and as part of the consideration for the
acquisition, Belden will be responsible for certain obligations, including
pension liabilities, of approximately $60 million, to be funded in future years.
The companies anticipate the transaction to close in approximately 45 days.
Belden expects that the transaction will be accretive to 2007 earnings. A fact
sheet with more information about the acquisition can be found on Belden's
website, www.belden.com.
FORWARD-LOOKING STATEMENTS
Statements in this release other than historical facts are "forward-looking
statements" made in reliance upon the safe harbor of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are based on
forecasts and projections about the industries served by the Company and about
general economic conditions. They reflect management's beliefs and expectations.
They are not guarantees of future performance and they involve risk and
uncertainty. The Company's actual results may differ materially from these
expectations. Some of the factors that may cause actual results to differ from
the Company's expectations include the Company's ability successfully to
integrate the acquired business; demand for the products of Belden and the
acquired company; the cost and availability of materials including copper,
plastic compounds derived from fossil fuels, and other materials; energy costs;
and other factors. For a more complete discussion of risk factors, please see
our Annual Report on Form 10-K for the year ended December 31, 2005, filed with
the SEC on March 16, 2006. Belden disclaims any duty to update any
forward-looking statements as a result of new information, future developments,
or otherwise.
ABOUT BELDEN
Belden is a leader in the design, manufacture, and marketing of signal
transmission products for data networking and a wide range of specialty
electronics markets including entertainment, industrial, security and aerospace
applications. To obtain additional information contact Investor Relations at
314-854-8054, or visit our website at www.belden.com.
ABOUT HIRSCHMANN AUTOMATION AND CONTROL GMBH
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As specialists in automation technology, Hirschmann Automation and Control GmbH
(HAC) supplies complete and integrated infrastructures for companywide data
communication. The product range extends from network components for Ethernet,
Fast Ethernet and Gigabit Ethernet through fiber interfaces for different
fieldbus systems down to electrical connectors for actuators and sensors. HAC
also provides electronic control systems for load indication and load moment
limitation. For additional information see http://www.hirschmann-ac.com.
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