Houston Wire & Cable Company to Sell Southwest Wire Rope Division, Use Proceeds to Reduce Revolver Debt
13 Janvier 2021 - 11:08PM
Houston Wire & Cable Company (Nasdaq: HWCC) today announced
that it has entered into a definitive asset purchase agreement for
the sale of its Southwest Wire Rope business, a leading provider of
lifting slings and wire rope and rigging products, for a purchase
price of $5 million, subject to a working capital adjustment. The
sale excludes approximately $2.6 million of trade accounts
receivable, which HWCC will retain. HWCC expects to use the net
sales proceeds and accounts receivable collections to further
reduce Revolver debt. HWCC has already reduced Revolver
debt to approximately $21.4 million as of January 13, 2021, from a
peak of $95.2 million in the first quarter of 2020.
James L. Pokluda III, HWCC President & CEO commented,
“Southwest Wire Rope is a company that for over fifty years has
been a leading supplier of quality lifting slings, wire rope and
rigging supplies to the lifting industry. We wish them much success
in the future. Proceeds from the sales of Southern Wire and
Southwest Wire Rope allow us to reduce debt, which lessens
financial risk in these uncertain times.”
The transaction is subject to customary closing conditions and
is expected to close in the first quarter.
About the Company With 45 years’
experience in the industry, Houston Wire & Cable Company,
an industrial distributor, is a large provider of products in the
U.S. market. Headquartered in Houston, Texas, the Company has
sales and distribution facilities strategically located
throughout the United States.
Standard stock items available for immediate delivery include
continuous and interlocked armor cable; instrumentation cable;
medium voltage cable; high temperature wire; portable cord; power
cable; primary and secondary aluminum distribution cable; private
branded products, including LifeGuard™, a low-smoke, zero-halogen
cable; mechanical wire and cable and related hardware, including
wire rope, lifting products and synthetic rope and slings;
corrosion resistant fasteners, hose clamps, and rivets.
Comprehensive value-added services include same-day shipping,
knowledgeable sales staff, inventory management programs,
just-in-time delivery, logistics support, customized online
ordering capabilities and 24/7/365 service.
Source: Houston Wire & Cable Company
CONTACT:
Eric W. Davis
Chief Financial Officer
Direct: 713.609.2177
Fax: 713.609.2168
edavis@houwire.com
Houston Wire and Cable (NASDAQ:HWCC)
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