HIGHLAND HEIGHTS, KY.: General Cable Corp. has acquired broadcast vendor Gepco International and its affiliate, Isotec Inc., for an undisclosed sum. Gepco, based in Des Plaines, Ill., generated $46 million in revenue last year.
General Cable (NYSE: BGC) makes and globally markets copper, aluminum and fiber-optic products for utilities, construction, communications and manufacturing. The company posted revenues of $6.23 billion last year, with net income of $217.2 million. During the first quarter of this year, BGC posted net income of $48.4 million on revenues of more than $1 billion.
Shares of BGC reached a 10-month high in late July, when the stock ticked briefly above $42, around half of its peak in 2007, but more than five times the valley it reached last November when it bottom out at $7.62. Shares jumped on news of the acquisition as well as a wider market surge, from around $39 last Friday to $42.50 Thursday.
The Gepco get extends General Cable into the domestic broadcast market and gives Gepco greater global exposure. Gepco’s broadcast revenues double over the last five years, and continued growth is anticipated.
“We expect the market for these products to grow at roughly two times GDP in the U.S. and somewhat higher internationally due to ongoing global analog-to-digital conversions,” said Jay Lahman, vice president and general manager for Carol, Gepco and Isotec products.
Gary Geppert, Gepco founder, has agreed to stay with the company. -- Deborah D. McAdams
