Nexans has executed an agreement to sell Berk-Tek to Leviton for US$202 million combining one integrated product and solutions provider to the network cabling industry.
Many in the datacomm space are aware that Berk-Tek and Leviton signed a marketing alliance in 2013. Christopher Guérin, Nexans CEO: “Our Berk-Tek colleagues will join a long-term partner with the best strategic fit to answer customers demand around connectivity. Together with Leviton, the Berk-Tek team will focus on developing innovative local area network solutions that are critically important in managing the demand of today’s emerging technologies.”
Daryoush Larizadeh, Leviton President: “Berk-Tek is a highly respected North American cabling company with exceptional manufacturing and product development capabilities. By adding Berk-Tek to the Leviton family, we will be able to provide truly end-to-end solutions to our customers.”
Berk-Tek’s 350 employees as well as its facilities located in Pennsylvania and North Carolina are expected to move under Leviton ownership before the end of Q3-2020 subject to customary closing conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvement Act of 1976. The company said the transaction value of US$202 million is a multiple of 10x over 2019 stand-alone adjusted EBITDA for Berk-Tek which reported sales for US$163 million in 2019.
Separately, WCMA has confirmed from Nexans that it also intends to close its energy cable manufacturing operations in Chester, New York. WCMA will provide more details about both of these operations as they become available.