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Cable Design Technologies Acquired A.W. Industries in 2001

Cable Design Technologies acquired A.W. Industries in 2001, adding a connector supplier serving networking, automotive and marine markets. Its annual sales were about $10 million, but the purchase price was not disclosed.
From TheFinanceBase Team2 min to read
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Cable Design Technologies acquired A.W. Industries, a Fort Lauderdale connector supplier, according to an EDN report published August 16, 2001. The report put A.W. Industries’ annual sales at approximately $10 million, but did not disclose the purchase price or other deal terms.

Who did Cable Design Technologies acquire?

The buyer was Cable Design Technologies, a Pittsburgh-based maker of network-connectivity products, fiber-optic cable and connectors, and electronic data and signal-transmission products. The acquired business, A.W. Industries, was based in Fort Lauderdale, Florida, and supplied connectors for networking, automotive, marine and other applications. EDN reported the acquisition on August 16, 2001; the EETimes index also identifies the target and its connector markets.

What was disclosed about the deal?

The EDN report said A.W. Industries had annual sales of approximately $10 million. That is a sales figure, not a disclosed company valuation or purchase price. The report did not provide the transaction structure or purchase price, so the amount Cable Design paid cannot be established from the available contemporary coverage.

Cable Design expected the acquisition to be immediately accretive to its earnings. That was the company’s stated expectation at the time; the report does not provide later results that would show whether or how quickly the anticipated contribution occurred.

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Why might the acquisition have mattered to Cable Design?

A.W. Industries’ connector business reached networking, automotive and marine applications, adding markets to a buyer already focused on connectivity and signal-transmission products. LJR Great Lakes Review analyst Elliot Schlang said, “The acquisition of A.W. Industries should broaden their product line nicely.” The sources support product-line breadth as a rationale, but do not detail specific product overlaps, cross-selling plans or integration steps.

What was happening at Cable Design at the time?

The acquisition took place as Cable Design was restructuring during a difficult communications-sector environment. The company had announced 600 job eliminations, bringing its 2001 workforce reductions to 900, and incurred $20 million in pretax restructuring charges associated with layoffs and bad-debt and inventory write-offs. These figures provide context for the deal, but the available reports do not explain how the acquisition affected the restructuring or its costs.

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What is not known about the acquisition?

  • The purchase price and other financial terms were not disclosed in the contemporary report.
  • The report does not provide a detailed A.W. Industries product catalog, transaction structure, or integration milestones.
  • It does not report post-acquisition operating results that would confirm the expected earnings contribution.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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