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Alcan's manufacturing plant in Wilbur is one of four operated by the company in the United States and three in Canada.
A Los Angeles private equity firm has signed an agreement to purchase a controlling interest in Alcan Cable.
Platinum Equity has struck a deal to buy 56 percent of the cable division of Alcan Engineered Products from London-based Rio Tinto, the world's third-largest mining company.
Terms of the sale were not announced. The deal is expected to close in the next several weeks.
Once the sale is completed, Platinum Equity will take over management of the Atlanta-based company, which supplies the utility transmission and distribution markets, along with residential and commercial construction industries. Rio Tinto will continue to serve as a major supplier of molten aluminum and aluminum rods to the business.
The Wilbur plant is one of four Alcan manufacturing facilities in the United States and three in Canada. The other U.S. plants are located in Chatsworth, Calif., Sedalia, Mo., and Williamsport, Pa. The Wilbur plant began production in 1991 and produces insulated overhead and underground cable, bare aluminum and aluminum alloy conductor wire and building wire products.
Platinum Equity officials have not announced how the sale might affect plant operations. In a joint written release last week, Brian Wall, a Platinum Equity partner, said Alcan was an “excellent fit” for Platinum's long-term approach to creating value.
Since it's founding in 1995, Platinum Equity has completed nearly 100 acquisitions with more than $27.5 billion in aggregate annual revenue.
“We're excited to work closely with Alcan Cable's talented employees, valued customers and other important stakeholders in partnership with Rio Tinto,” Wall said in the release.
Guy Elliott, Rio Tinto's chief financial officer, said the deal would allow his company to step back from the day-to-day management of the company while retaining an economic interest as market conditions improve.
Rio Tinto has sold off $7 billion of assets since March 2008 to help repay debt incurred from the purchase of Canadian aluminum producer Alcan Inc. for $38.1 billion, Bloomberg reported.
Last week, Rio Tinto agreed to sell another division, Alcan Composites, to Swiss company Schweiter Technologies for $349 million. Earlier, the company sold its Alcan packaging businesses to Amcor of Australia for $2 billion.
• You can reach reporter John Sowell at 957-4209 or by e-mail at jsowell@nrtoday.com.
Platinum Equity has struck a deal to buy 56 percent of the cable division of Alcan Engineered Products from London-based Rio Tinto, the world's third-largest mining company.
Terms of the sale were not announced. The deal is expected to close in the next several weeks.
Once the sale is completed, Platinum Equity will take over management of the Atlanta-based company, which supplies the utility transmission and distribution markets, along with residential and commercial construction industries. Rio Tinto will continue to serve as a major supplier of molten aluminum and aluminum rods to the business.
The Wilbur plant is one of four Alcan manufacturing facilities in the United States and three in Canada. The other U.S. plants are located in Chatsworth, Calif., Sedalia, Mo., and Williamsport, Pa. The Wilbur plant began production in 1991 and produces insulated overhead and underground cable, bare aluminum and aluminum alloy conductor wire and building wire products.
Platinum Equity officials have not announced how the sale might affect plant operations. In a joint written release last week, Brian Wall, a Platinum Equity partner, said Alcan was an “excellent fit” for Platinum's long-term approach to creating value.
Since it's founding in 1995, Platinum Equity has completed nearly 100 acquisitions with more than $27.5 billion in aggregate annual revenue.
“We're excited to work closely with Alcan Cable's talented employees, valued customers and other important stakeholders in partnership with Rio Tinto,” Wall said in the release.
Guy Elliott, Rio Tinto's chief financial officer, said the deal would allow his company to step back from the day-to-day management of the company while retaining an economic interest as market conditions improve.
Rio Tinto has sold off $7 billion of assets since March 2008 to help repay debt incurred from the purchase of Canadian aluminum producer Alcan Inc. for $38.1 billion, Bloomberg reported.
Last week, Rio Tinto agreed to sell another division, Alcan Composites, to Swiss company Schweiter Technologies for $349 million. Earlier, the company sold its Alcan packaging businesses to Amcor of Australia for $2 billion.
• You can reach reporter John Sowell at 957-4209 or by e-mail at jsowell@nrtoday.com.
