Coleman Cable (CCIX)

 

We made two significant acquisitions during 2007 (collectively, the “2007 Acquisitions”) which significantly increased our scale. In April 2007, we acquired 100% of the outstanding equity interests of Copperfield, LLC (“Copperfield”) for $215.4 million, including acquisition-related costs and working capital adjustments. At the time of our acquisition, Copperfield was one of the largest privately-owned manufacturers and suppliers of electrical wire and cable products in the U.S., with annual sales in excess of $500 million. Then in November 2007, we acquired the electrical products business of Katy Industries, Inc. (“Katy”), which operated in the U.S. as Woods Industries, Inc. (“Woods U.S.”) and in Canada as Woods Industries (Canada) Inc. (“Woods Canada”), collectively referred to herein as Woods (“Woods”). The principal business of Woods was the design and distribution of consumer electrical cord products, sold principally to national home improvement, mass merchant, hardware and other retailers. We purchased certain assets of Woods U.S. and all the stock of Woods Canada for $53.8 million, including acquisition-related costs and working capital adjustments. The acquisition of Woods, which at the time of our acquisition had annual sales of approximately $200 million, has both expanded our U.S. business and enhanced our market presence and penetration in Canada.

 

Results of operations for the 2007 Acquisitions have been included in our consolidated financial statements since their respective acquisition dates. Accordingly, our 2007 consolidated operating results reflect approximately nine months of Copperfield activity: April 2, 2007 to December 31, 2007, and one month of Woods activity: November 30, 2007 to December 31, 2007. See further discussion within Part II, Item 7 and in Note 2 of Notes to Consolidated Financial Statements contained in Part II, Item 8 of this document.

 

We financed the above acquisitions primarily with proceeds received from the issuance of debt and borrowings under our revolving credit facility, thereby significantly increasing our total outstanding debt in 2007. See further discussion within the “Liquidity and Capital Resources” section in Part II, Item 7 of this document.

 

 

We made two significant acquisitions during 2007 (collectively,
the “2007 Acquisitions”) which significantly increased
our scale. In April 2007, we acquired 100% of the outstanding
equity interests of Copperfield, LLC (“Copperfield”)
for $215.4 million, including acquisition-related costs and
working capital adjustments. At the time of our acquisition,
Copperfield was one of the largest privately-owned manufacturers
and suppliers of electrical wire and cable products in the U.S.,
with annual sales in excess of $500 million. Then in
November 2007, we acquired the electrical products business of
Katy Industries, Inc. (“Katy”), which operated in the
U.S. as Woods Industries, Inc. (“Woods U.S.”) and
in Canada as Woods Industries (Canada) Inc. (“Woods
Canada”), collectively referred to herein as Woods
(“Woods”). The principal business of Woods was the
design and distribution of consumer electrical cord products,
sold principally to national home improvement, mass merchant,
hardware and other retailers. We purchased certain assets of
Woods U.S. and all the stock of Woods Canada for
$53.8 million, including acquisition-related costs and
working capital adjustments. The acquisition of Woods, which at
the time of our acquisition had annual sales of approximately
$200 million, has both expanded our U.S. business and
enhanced our market presence and penetration in Canada.

 

Results of operations for the 2007 Acquisitions have been
included in our consolidated financial statements since their
respective acquisition dates. Accordingly, our 2007 consolidated
operating results reflect approximately nine months of
Copperfield activity: April 2, 2007 to December 31,
2007, and one month of Woods activity: November 30, 2007 to
December 31, 2007. See further discussion within
Part II, Item 7 and in Note 2 of Notes to
Consolidated Financial Statements contained in Part II,
Item 8 of this document.

 

We financed the above acquisitions primarily with proceeds
received from the issuance of debt and borrowings under our
revolving credit facility, thereby significantly increasing our
total outstanding debt in 2007. See further discussion within
the “Liquidity and Capital Resources” section in
Part II, Item 7 of this document.

 

 

From time to time, we consider acquisition opportunities that have the potential to materially increase the size of our business operation or provide us with some other strategic advantage. We made two such acquisitions during 2007.

 

Copperfield, LLC

 

On April 2, 2007, we acquired 100% of the outstanding equity interests of Copperfield for $215.4 million, including acquisition-related costs and working capital adjustments. The acquisition of Copperfield, which at the time of our acquisition was one of the largest privately-owned manufacturers and suppliers of electrical wire and cable products in the United States with annual sales in excess of $500 million, increased our scale, diversified and expanded our customer base and we believe has strengthened our competitive position in the industry.

 

Woods Industries, Inc.

 

On November 30, 2007, we acquired the electrical products business of Katy, which operated in the U.S. as Woods U.S. and in Canada as Woods Canada. Woods was principally focused on the design and distribution of consumer electrical cord products, sold primarily to national home improvement, mass merchant, hardware and other retailers. We purchased certain assets of Woods U.S. and all the stock of Woods Canada for $53.8 million, including acquisition-related costs and working capital adjustments. The acquisition of Woods has expanded our U.S. business while enhancing our market presence and penetration in Canada.

 

 

From time to time, we consider acquisition opportunities that
have the potential to materially increase the size of our
business operation or provide us with some other strategic
advantage. We made two such acquisitions during 2007.

 

Copperfield,
LLC

 

On April 2, 2007, we acquired 100% of the outstanding
equity interests of Copperfield for $215.4 million,
including acquisition-related costs and working capital
adjustments. The acquisition of Copperfield, which at the time
of our acquisition was one of the largest privately-owned
manufacturers and suppliers of electrical wire and cable
products in the United States with annual sales in excess of
$500 million, increased our scale, diversified and expanded
our customer base and we believe has strengthened our
competitive position in the industry.

 

Woods
Industries, Inc.

 

On November 30, 2007, we acquired the electrical products
business of Katy, which operated in the U.S. as Woods
U.S. and in Canada as Woods Canada. Woods was principally
focused on the design and distribution of consumer electrical
cord products, sold primarily to national home improvement, mass
merchant, hardware and other retailers. We purchased certain
assets of Woods U.S. and all the stock of Woods Canada for
$53.8 million, including acquisition-related costs and
working capital adjustments. The acquisition of Woods has
expanded our U.S. business while enhancing our market
presence and penetration in Canada.

 

 

From time to time, we consider acquisition opportunities that could materially increase the size of our business operation. We made two acquisitions during 2007 which have significantly increased our scale and presented us with what we believe are a number of strategic benefits.

 

Copperfield, LLC

 

On April 2, 2007, we acquired 100% of the outstanding equity interests of Copperfield, LLC (“Copperfield”) for $215.4 million, including acquisition-related costs and working capital adjustments. At the time of our acquisition, Copperfield was one of the largest privately-owned manufacturers and suppliers of electrical wire and cable products in the U.S., with annual sales in excess of $500 million.

 

Woods Industries, Inc.

 

On November 30, 2007, we acquired the electrical products business of Katy Industries, Inc., which operates in the U.S. as Woods Industries, Inc. (“Woods U.S.”) and in Canada as Woods Industries (Canada) Inc. (“Woods Canada”), collectively referred to herein as Woods (“Woods”). The principal business of Woods is the design and distribution of consumer electrical cord products, which are sold principally to national home improvement, mass merchant, hardware and other retailers. We purchased certain assets of Woods U.S. and all the stock of Woods Canada for $53.2 million, including acquisition-related costs, but subject to finalization of working capital adjustments.

 

 

From time to time, we consider acquisition opportunities that
could materially increase the size of our business operation. We
made two acquisitions during 2007 which have significantly
increased our scale and presented us with what we believe are a
number of strategic benefits.

 

Copperfield,
LLC

 

On April 2, 2007, we acquired 100% of the outstanding
equity interests of Copperfield, LLC (“Copperfield”)
for $215.4 million, including acquisition-related costs and
working capital adjustments. At the time of our acquisition,
Copperfield was one of the largest privately-owned manufacturers
and suppliers of electrical wire and cable products in the U.S.,
with annual sales in excess of $500 million.

 

Woods
Industries, Inc.

 

On November 30, 2007, we acquired the electrical products
business of Katy Industries, Inc., which operates in the
U.S. as Woods Industries, Inc. (“Woods U.S.”) and
in Canada as Woods Industries (Canada) Inc. (“Woods
Canada”), collectively referred to herein as Woods
(“Woods”). The principal business of Woods is the
design and distribution of consumer electrical cord products,
which are sold principally to national home improvement, mass
merchant, hardware and other retailers. We purchased certain
assets of Woods U.S. and all the stock of Woods Canada for
$53.2 million, including acquisition-related costs, but
subject to finalization of working capital adjustments.