ADC buys network infrastructure maker

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ADC buys network infrastructure maker

ADC Telecommunications will purchase the Krone communications division of GenTek for approximately $350m.

The acquisition is the first major step in ADC's plans to increase its global network infrastructure products and services.

The Krone group supplies cable as well as copper and fibre-based connectivity products used in public access and enterprise networks.

Krone will boost ADC's global scale in supplying global network infrastructure gear and is expected to speed ADC's entry into such emerging markets as China, India, Russia, Eastern Europe and Southeast Asia.

Krone employs more than 2,000 people, which are located in the US, Mexico, Germany, the UK and Australia, and has eight factories and five research and development centres around the world.

Last year, it had sales of $316m and operating income of $13m before one-time items.

The sale is part of GenTek's restructuring plans. GenTek filed voluntary petitions for reorganisation under Chapter 11 of the US Bankruptcy Code on 11 October 2002, from which the company emerged on 10 November 2003.

The transaction is expected to close during ADC's third quarter which ends on 31 July.

Laura Rohde writes for IDG News Service


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