General Cable Corporation (BGC - Free Report) expanded its reach in the Brazilian market with the acquisition of Delphia Produtos Eletricos Ltda. in São Bernardo do Campo, São Paulo State, Brazil. Delphia is engaged in the manufacture of automotive ignition wire harnesses.
The Delphia business will be part of General Cable Automotiva Brasil. Delphia generated revenues of $20 million in 2011.
The acquisition will help General Cable to expand its ignition wire harness business globally. The company currently operates in the United States, Mexico and Europe.
General Cable has expanded its service offerings, particularly in transportation and industrial applications, for its customers including original equipment manufacturers, suppliers and distributors. The addition of Delphia marks the company’s entry into the lucrative South American market.
The markets for all of General Cable’s products are highly competitive. Though the extent of competition varies from one product niche to another, the principal factors influencing competition are generally price, quality, breadth of product line, inventory availability, and delivery time and customer service.
General Cable’s recent acquisitions spread worldwide will broaden its geographical presence, reduce seasonality, and strengthen its long-term organic growth prospects
Headquartered in Highland Heights, Kentucky, General Cable is engaged in the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for the energy, industrial, specialty and communications markets. The company enjoys competitive strengths in its strong product line, brand recognition, distribution and logistics, sales and service, and operating efficiency.
General Cable Corporation holds a Zacks #3 Rank (short-term Hold recommendation).