BY MATT VINCENT
Connectivity manufacturing titans Molex (www.molex.com) and Superior Essex (www.superioressex.com) each recently announced significant business acquisitions: Molex has acquired Polymicro Technologies, LLC, an optical fiber manufacturer based in Phoenix, AZ, while Superior Essex completed its acquisition of Invex S.p,A., a magnet wire producer based in Europe.
Molex expects the strategic acquisition of Polymicro Technologies to boost its share of the global fiber-optic assemblies market. The acquisition also offers Molex penetration into the analytical, genomic, and biotechnology markets that use optical fiber, micro-components, optical fiber ferrules, capillary tubing, and assemblies.
Polymicro manufactures silica capillary tubing and specialty optical fibers, optical fiber and capillary assemblies, discrete micro components, and quartz optical fiber ferrules. Molex says the acquired company offers “a total manufacturing solution,” providing initial product design, product and process development, prototyping and beta trials, and volume production. Industries served include analytical, medical, aerospace, military, manufacturing, telecommunication and communication.
“Polymicro Technologies’ products and capabilities will expand Molex’s fiber-optic offerings in key markets that include medical, military and telecommunications,” says Michael Nauman, president of Molex’s Global Integrated Products division. “With more than 20 years in these growing markets, Polymicro Technologies is a respected industry leader with a strong customer base and an excellent group of talented and experienced people. With Molex’s global resources, we are confident that, together, we will grow even faster in key markets in the global fiber-optics industry.”
Founded in 1984 and employing approximately 100 people, Polymicro will operate as a Molex subsidiary and part of the company’s Global Integrated Products division. “The combination of Molex’s global footprint and resources with Polymicro’s technologies will help expand our offerings globally,” notes Gary Nelson, president and general manager of Polymicro Technologies.
Meanwhile, Superior Essex Inc. has completed the acquisition of 100% of the outstanding common stock of Invex S.p.A. from Italian private equity firm Investitori Associati, for a cash purchase price of approximately 30.1 million Euro. Invex operates two magnet wire facilities in Italy and reported sales of approximately $285 million for 2006.
“Invex is highly complementary across our product lines, customer base and manufacturing assets,” explains Stephen Carter, CEO of Superior Essex Inc. “Also, we expect the acquisition will provide near- and long-term synergy opportunities. We believe we will benefit from expanding our internal, proprietary enamel usage and in the procurement of raw materials. We also expect to reap logistical benefits from production realignment, including minimizing manufacturing and transportation costs. And, of course, we will share best practices across Europe and within our global magnet wire family to improve our overall operational efficiency.”
Year-to-date, Superior Essex notes that it has completed four such acquisitions. In the second quarter, the company finalized its acquisition of Nexans’ (www.nexans.com) Simcoe, Canada, magnet wire facility and acquired Nexans’ outstanding 40% equity position in the company’s European Magnet Wire subsidiary. Also, in July, Superior Essex announced the completion of its acquisition of Nexans’ Tianjin, China, magnet wire operations. In total, all of the acquisitions should add approximately $450 million in annual revenues, says Superior Essex.
“Our European management team will continue to be headquartered in Compiegne, France,” concludes Carter; “however, Invex will be an important addition to the Essex network of European magnet wire facilities, as we believe the Invex facilities will be among the most cost competitive in our factory network.”
