MEMPHIS, Tenn. – Jan. 19, 2005 — Thomas & Betts Corporation announced that it has purchased the assets of Southern Monopole and Utilities Company, a subsidiary of the Qualico Steel Company, Inc. for approximately $16 million in cash. Southern Monopole manufactures steel poles used for electrical transmission and substations, lattice utility towers, cellular communications and lighting. Thomas & Betts expects the transaction to be slightly accretive to 2005 earnings.
“Thomas & Betts is a leader in providing highly engineered steel poles to electrical utilities but our ability to grow has been limited by capacity constraints. We are delighted to be able to cost effectively increase our manufacturing base with this strategic acquisition,” said Dominic J. Pileggi, president and chief executive officer. Pileggi noted that Thomas & Betts has seen steady improvement in demand for its steel structure products over the past year and expects continued market growth for the next several years, even without a national initiative to rebuild the electrical transmission grid. The acquisition is expected to contribute approximately $20 million in sales to the Steel Structures segment in 2005. If the market expands as anticipated over the next several years, the potential increase in sales from the acquisition could be up to $50 million.
The transaction includes a state-of-the-art 240,000-square foot manufacturing facility near Gadsden, Alabama. Thomas & Betts intends to continue to operate this facility to manufacture its Meyer TM brand poles. The company will also continue to manufacture Meyer products at its facilities in Hager City, Wisconsin, Lancaster, South Carolina and Houston, Texas.
About Thomas & Betts Corporation [ www.tnb.com ]
In addition to steel structures, Thomas & Betts Corporation is a leading designer and manufacturer of electrical connectors and components used in industrial, construction, communications and utility markets. The company is also a leading producer of commercial heating units. Headquartered in Memphis, Tenn., the company has manufacturing, distribution and office facilities worldwide.