Lucent Technologies sells optical fiber business for $2.75 billion
July 24, 2001--Lucent Technologies announced it has agreed to sell its Optical Fiber Solutions business for $2.75 billion to Furukawa Electric Co., Ltd. and Corning Incorporated.
Lucent Technologies (NYSE: LU) announced it has agreed to sell its Optical Fiber Solutions (OFS) business for $2.75 billion to Furukawa Electric Co., Ltd. (Tokyo: 5801) and Corning Incorporated. (NYSE: GLW).
Lucent will receive $2.525 billion from Furukawa for the major portion of the business. Corning will pay $225 million in cash for Lucent's interests in two joint ventures in China -- Lucent Technologies Shanghai Fiber Optic Co. Ltd. and Lucent Technologies Beijing Fiber Optic Cable Co., Ltd. In addition, Furukawa and CommScope (NYSE: CTV) have agreed to enter into one or more joint ventures that will be formed to operate the OFS businesses. Up to $250 million of Furukawa's payment to Lucent may be in CommScope securities.
The sale to Furukawa, which is subject to regulatory approval and other customary closing conditions, is targeted to close toward the end of the third calendar quarter. Sale of Lucent's interest in the China joint ventures is subject to various approvals, including Chinese governmental approval.
Lucent's Optical Fiber Solutions business employs more than 6,000 people, with its headquarters and largest manufacturing facility located in Norcross, Ga., a suburb of Atlanta. It also has wholly owned and joint-venture facilities in Carrollton, Ga., Massachusetts, North Carolina, New Jersey, Connecticut, Denmark, China, Japan, Russia, Germany and Brazil.
About Lucent Technologies:
Lucent Technologies, headquartered in Murray Hill, N.J., USA, designs and delivers systems, software and services for next-generation communications networks for service providers and enterprises. For more information, visit www.lucent.com.