St. Louis-based connectivity solution provider, Belden announced today that they have made a significant new acquisition: they purchased Syracuse-based PPC, a provider of broadband connectivity solutions. The purchase of PPC cost Belden $515.7 million, but, according to Belden, it is well-worth it for their investors, as they forecast adjusted earnings per share of $0.54 in 2013.
The company comes to Belden with strong financials: estimated 2012 revenue of $238 million. They also bring with them strong customer relationships, a strong team, and a strong portfolio of products. PPC’s impressive credentials are even more impressive when one considers that up until recently, the company was family-owned. According to their website, the success of the company can be attributed to the “visionary individuals” that they employ.
The president and chief executive officer of Belden, John Stroup, is enthusiastic about the acquisition. In a recent statement from the company, he called it a “wonderful example” of their business transformation, noting that it highlights their “strategic focus on building global business platforms with strong financial attributes, serving attractive end markets”.
PPC, he says, provides “innovative products” that, through the acquisition, will “enable our customers to profitably grow their business”. He anticipates that PPC’s products will do this by “delivering higher bandwith and enhanced services, with fewer service calls”. Together, he says, Belden and PPC will provide “unique end-to-end solutions” for their customers, calling himself “excited” about the potential opportunities that the acquisition holds for both companies and their customers.
In the same statement, Belden predicted that the combined effort of the two companies holds great promise. They foresee that the combined company will be a leader in broadband connectivity, that the acquisition will “significantly” enhance their broadcast solutions platform, and that it will increase their exposure to “attractive end markets”, among other benefits.
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