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Belden to Buy Cable Systems Holding Co.

May 25, 1999|Bloomberg News

Belden Inc., a maker of electronic wire and cable, agreed to buy Cable Systems Holding Co., the holding company for Cable Systems International Inc., for $180 million in cash, to boost its offerings to telephone companies. Phoenix-based Cable Systems International is the second-largest U.S. maker of copper telecommunications cable; it was formed in 1995 when AT&T Corp. sold the division to an investor group and senior managers of the division. St. Louis-cased Belden said the acquisition would complement and expand its line of wires that carry voice, video and computer information. Cable Systems employs about 1,500 people and had revenue of $300 million last year. The purchase will boost earnings "modestly" this year and "meaningfully" next year and thereafter, Belden said. Belden, which had 1998 revenue of $724 million, said it expects to complete the transaction late in the second quarter and to operate Cable Systems as a separate unit. Belden shares rose 31 cents to close at $20.31 on the NYSE.

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