AmerCable Holdings Inc. of El Dorado has been purchased by Nexans, a Parisian cable company.
Nexans paid $275 million for the acquisition, according to a news release.
AmerCable, owned by private equity firm Industrial Growth Partners of San Francisco, manufactures cables mainly for the mining, oil and gas and renewable energy industries. These cables are engineered specifically for harsh environments. The company also provides support services for its clients.
AmerCable employs 400 workers, with more than half in El Dorado and others in Houston. The company also has operations in China, Latin America and Australia.
According to the news release, AmerCable’s revenue was $270 million for the year ending Dec. 31, representing a growth of 30 percent.
"We are happy to welcome AmerCable associates within our group," said Nexans CEO Frederic Vincent in the release. "The acquisition of AmerCable fits well with Nexans’ strategy to develop its industry division, extending its presence in markets with high-growth prospects and above market profitability."
Nexans employs 24,500 people, has a presence in 40 countries and in 2011 had sales of about $11 billion.
‘Potential’
AmerCable was a division of U.S. Steel until 1984 when Associated Materials Inc. of Dallas bought it and two other U.S. Steel divisions. In 1993, Robert Hogan became president of AmerCable.
"I saw potential that we could grow the business if we were doing the right things," Hogan told Arkansas Business in 2005. "The biggest thing is that we have great people. They’re the ones that make it happen."
AmerCable then invested $15 million over five years to modernize the company and its technology.
In December 2001, Associated Material put AmerCable and a sister company, Alside of Akron, Ohio, up for sale as a package deal. Harvest Partners of New York bought both companies in April 2002, but it really only wanted Alside, so it allowed AmerCable executives to buy back the company.
AmerCable’s senior management, led by Hogan, bought the company for an undisclosed price.
In 2005, it entered Arkansas Business’ list of the state’s 75 largest private companies for the first time at No. 72 with reported revenue of $80 million in 2004. But shortly after that list appeared, the company was sold Industrial Growth Partners, a $1.3 billion private equity firm that focuses exclusively on the manufacturing sector.
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