Acquisition gives foothold in Chinese cable market

Belden has completed the acquisition of LTK Wiring, a Hong Kong company, for a cash purchase price of approximately US $195 million.

Belden has completed the acquisition of LTK Wiring, a Hong Kong company, for a cash purchase price of approximately US $195 million.

LTK Wiring is one of the largest manufacturers of electronic cable for the China market, with 2006 revenues of approximately $220 million.

LTK has three manufacturing plants in China - in Huizhou, Shanghai and Dalian - and employs about 2000 associates.

"The addition of LTK Wiring to Belden gives us a strong presence in China among OEM customers, including consumer electronics manufacturers, and our new LTK associates bring capabilities in design, sourcing, logistics, manufacturing, sales and customer service that will accelerate Belden's penetration of the fast-growing China market and improve our position throughout Asia", said John Stroup, President and Chief Executive Officer of Belden.

"Our priorities now are to foster continuing growth and success of the LTK brand in its served markets and to begin localising production of Belden products in China".

"We will then explore commercial synergies, both to expand the reach of LTK's products worldwide and to better penetrate Belden's traditional vertical markets in China such as industrial automation, broadcast, data networking and building automation".

The integration team for LTK, which reports to Stroup, is cochaired by Naresh Kumra, Belden's President, Asia Pacific Operations, and Simon TY Cua, Managing Director, LTK.

"Integration planning for LTK began months ago, with teams addressing manufacturing, financial reporting, information technology and human resources", said Stroup.

"We will manage the integration of acquisitions with the same disciplined approach as the rest of our strategy deployment process", he concluded.

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