Houston Wire & Cable to Be Acquired for $91 Million

OmniCable, a subsidiary of food distributor Dot Holdings Co., is acquiring the wire and cable provider for $5.30 a share.
HWCC logo

Houston Wire & Cable Co. (NASDAQ: HWCC), Houston, on Thursday announced that it will be acquired by West Chester, Pennsylvania-based Omni Cable LLC in an all-cash transaction for $5.30 a share, or $91 million.

The price represents a premium of 39% to HWCC’s unaffected closing price of $3.80 on March 24 and an 89% premium to the $2.81 average closing price for the preceding 12-month period. HWCC’s board of directors has unanimously approved sale.

OmniCable is a subsidiary of Dot Holdings Co., which is owned by Dot Family Holdings, owners and operators of Dot Foods Inc., a food industry distributor.

James L. Pokluda III, HWCC’s president and CEO, said: “HWCC, Vertex and OmniCable are highly respected suppliers in their respective markets serving electrical and industrial distributors throughout the U.S. and Canada. This merger creates an outstanding combination of leading businesses that will be well positioned to provide increased value and customer service to its redistributor partners.”

Said Jeff Siegfried, OmniCable founder and vice chairman: “The HWCC team shares our passion for customer service,” “Our shared central focus on redistribution, logistical expertise, and unyielding pursuit of perfection for our business partners will drive both businesses to enhance the value that we bring to the marketplace. We look forward to continued growth and the shared learning we know will come from this new relationship.”

William Blair & Co. LLC and Johnson Rice & Co. LLC are serving as financial advisers to HWCC, and Schiff Hardin LLP is serving as legal counsel. Lewis Rice LLP is serving as legal counsel to OmniCable.

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