Nexans says it has agreed to sell it Berk-Tek LAN cable subsidiary to Leviton. The deal, set to close before the end of the third quarter of this year, sets an enterprise value of $202 million on Berk-Tek.
Berk-Tek makes copper and fiber cables for data, voice, and power transmission in LAN applications. It employs approximately 350 people and operates manufacturing facilities in New Holland, PA, and Fuquay-Varina, NC. Berk-Tek and Leviton have operated a marketing alliance since 2013 (see “Berk-Tek Leviton Technologies alliance targets high-performance networks”).
The $202 million enterprise value is approximately a 10X multiple over 2019 standalone adjusted EBITDA, according to Nexans. Berk-Tek reported sales of $163 million in 2019, the company added.
“Our Berk-Tek colleagues will join a long-term partner with the best strategic fit to answer customers demand around connectivity,” commented Christopher Guérin, Nexans CEO. “Together with Leviton, the Berk-Tek team will focus on developing innovative local area network solutions that are critically important in managing the demand of today’s emerging technologies.”
“Berk-Tek is a highly respected North American cabling company with exceptional manufacturing and product development capabilities. By adding Berk-Tek to the Leviton family, we will be able to provide truly end-to-end solutions to our customers” added Daryoush Larizadeh, Leviton’s president.
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