Belden Inc. has agreed to purchase two wire and cable businesses in Austria and Hungary from Siemens AG.
Belden, St. Louis, will acquire Dorfler Kabelwerk GmbH, Klosterneuburg, Austria, and Duna Kabel Kft., Budapest. Terms of the agreement weren't disclosed.
Estimated sales for Siemens wire and cable businesses combined are roughly $20 million, according to Merrill Lynch & Co. Inc., New York.
Belden plans to use both facilities to supply the European market, in addition to its existing facilities in Germany and The Netherlands, according to the company.
The acquisitions will extend Belden's market reach in Europe, and the Hungary facility will establish a low-cost operating base there for the company, said Merrill Lynch analyst Jerry H. Labowitz. Both parties expect to complete the transaction in the fourth quarter.
The acquisitions, albeit small, show continuing consolidation in the specialty wire and cable industry, Labowitz said. Since 1997, Belden has announced five acquisitions. Most recently, the company bought Cable Systems International Inc. for $180 million in cash.
The latest divestiture is part of Siemens' ongoing 10-point plan to improve profitability. Last November, Siemens announced its intention to withdraw from the local network and special copper cable business. Earlier this week, the conglomerate agreed to sell its electromechanical operations to Tyco International Ltd.
Belden earned $9.2 million on revenue of $166.2 million for the second quarter ended June 30.