Though highly improbable for such a profit making company, the possible sale has been announced in a company statement.
July 17, 2017
General Cable Corp., a supplier of copper, aluminum and fiber optic wire and cable products for the energy, industrial, and communications markets, is considering a future that might include a sale of the company, as reported by an online news portal.
The company has been profitable, and there seems to be little evidence of investor pressure to sell. Nor do there seem to be any obvious candidates to buy General Cable. General Cable is in the second year of a three-year plan to evaluate its strategic roadmap. President and CEO Mike McDonnell initiated the program shortly after being named to those positions in 2015.
The company is attempting to focus on its most profitable businesses and/or those in which it has a leading position. It also intends to make existing operations more efficient. McDonnell reported in the company’s first-quarter earnings call with analysts that the company was making progress on all if its goals. He noted the company sold its operation in Pakistan and was in the process of selling off more in Africa and Asia.
In a statement announcing that a sale of the company might be possible, John E. Welsh, III, nonexecutive chairman of the board, said, “After careful consideration, our Board has determined to undertake a review of strategic alternatives with the goal of maximizing shareholder value. While the management team has made excellent progress in the execution of our strategic roadmap to transform the Company into a more focused, efficient and innovative organization, we expect the industry to consolidate over time and believe the review at this time is in the best interests of shareholders.”
