Amphenol Corporation to Acquire Mobile Networks Businesses From CommScope
18 Juillet 2024 - 3:07PM
Business Wire
Transaction highlights:
- To acquire CommScope’s Outdoor Wireless Networks and
Distributed Antenna Systems businesses for $2.1 billion in
cash
- Adds advanced antenna and associated interconnect products,
technologies and capabilities
- Complements Amphenol’s existing product portfolio for
next-generation wireless networks
- Expected to be accretive to Amphenol’s Diluted EPS in first
full year after closing
Amphenol Corporation (NYSE: APH) today announced a definitive
agreement to acquire CommScope’s (NASDAQ: COMM) mobile networks
businesses for $2.1 billion in cash, subject to customary
post-closing adjustments. The deal includes the purchase of
CommScope’s Outdoor Wireless Networks (OWN) segment as well as the
Distributed Antenna Systems (DAS) business which resides in
CommScope’s Networking, Intelligent Cellular and Security Solutions
(NICS) segment. These combined businesses are currently expected to
have full-year 2024 sales and EBITDA margins of approximately $1.2
billion and 25%, respectively. Assuming a continuation of current
economic conditions, the acquisition is expected to be accretive to
Amphenol’s Diluted Earnings Per Share in the first full year after
closing, excluding acquisition-related costs.
“We are excited by the prospect of adding CommScope’s mobile
networks businesses and their approximately 4,000 talented
employees to the Amphenol family,” said Amphenol President and
Chief Executive Officer, R. Adam Norwitt. “CommScope provides
mobile networks solutions, with advanced technologies in the areas
of base station antennas and related interconnect solutions, as
well as distributed antenna systems. In particular, we are
encouraged that the businesses we are acquiring make up the former
Andrew Corporation portfolio of products, a company with a rich
history of innovation and technology leadership in the wireless
industry. We look forward to supporting customers who are
developing next-generation wireless networks around the world with
these advanced solutions as well as our own existing complementary
products. Finally, this acquisition further supports Amphenol’s
long-term growth and balanced end market exposure across all areas
of the electronics market.”
Amphenol expects to finance the acquisition through a
combination of cash on hand and debt. Subject to the receipt of
customary regulatory approvals and other closing conditions, the
deal is expected to close in the first half of 2025.
Amphenol looks forward to discussing the acquisition when the
Company reports second quarter 2024 earnings on July 24, 2024.
Advisors
Goldman Sachs & Co. LLC is serving as Amphenol’s financial
advisor for the transaction and Latham & Watkins LLP is acting
as its legal advisor.
About Amphenol
Amphenol Corporation is one of the world’s largest designers,
manufacturers and marketers of electrical, electronic and fiber
optic connectors and interconnect systems, antennas, sensors and
sensor-based products and coaxial and high-speed specialty cable.
Amphenol designs, manufactures and assembles its products at
facilities in approximately 40 countries around the world and sells
its products through its own global sales force, independent
representatives and a global network of electronics distributors.
Amphenol has a diversified presence as a leader in high-growth
areas of the interconnect market including: Automotive, Broadband
Communications, Commercial Aerospace, Defense, Industrial,
Information Technology and Data Communications, Mobile Devices and
Mobile Networks. For more information, visit www.amphenol.com.
Forward-looking Statements
This press release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Such forward-looking statements may contain words and
terms such as: “anticipate,” “could,” “believe,” “continue,”
“expect,” “estimate,” “forecast,” “ongoing,” “project,” “seek,”
“predict,” “target,” “will,” “intend,” “plan,” “look ahead,”
“optimistic,” “potential,” “guidance,” “may,” “should,” or “would”
and other words and terms of similar meaning. Forward-looking
statements by their nature address matters that are, to different
degrees, uncertain, such as statements about expected 2024 sales
and EBITDA margins, future accretion, anticipated benefits of the
acquisition, financing sources, the expected timing for closing the
acquisition and other matters. These statements are only
predictions, and such forward-looking statements are based on
current expectations and involve inherent risks and uncertainties,
including factors that could delay, divert or change any of them,
and could cause actual outcomes and results to differ materially
from current expectations. No forward-looking statement can be
guaranteed. Risks and uncertainties include, but are not limited
to: (i) the risk that the proposed acquisition may not be completed
in a timely manner or at all, or if it is completed, that the
expected benefits of the proposed acquisition may not be realized,
(ii) the failure to satisfy the conditions to the consummation of
the proposed acquisition, including the receipt of certain
regulatory and other approvals, (iii) the occurrence of any event,
change or other circumstance that could give rise to the
termination of the purchase agreement between the parties and (iv)
unanticipated difficulties or expenditures relating to the
acquisition, the response of business partners and competitors to
the announcement of the proposed acquisition, potential disruptions
to current plans and operations and/or potential difficulties in
employee retention as a result of the announcement and pendency of
the acquisition. The actual financial impact of the proposed
acquisition may differ from the expected financial impact described
in this press release. The foregoing list of risk factors is not
exhaustive. Forward-looking statements in this press release should
be evaluated together with the many uncertainties that affect
Amphenol’s and CommScope’s respective businesses, particularly
those identified in the risk factor discussion in each company’s
Annual Report on Form 10-K for the year ended December 31, 2023,
and its subsequent Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K. Amphenol undertakes no obligation to publicly
update any forward-looking statement, whether as a result of new
information, future events or otherwise. The forward-looking
statements made in this communication relate only to events as of
the date on which the statements are made.
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version on businesswire.com: https://www.businesswire.com/news/home/20240718840558/en/
Sherri Scribner Vice President, Strategy and Investor Relations
203-265-8820 IR@amphenol.com
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