Sunday, May 5, 2013

Ericsson Sells Power Cable Business for US$38.4 Million

Ericsson has sold its power cable operation to NKT Cables, one of the largest power cable manufacturers in Europe, for about SEK 250 million (US$38.4 million).  The business unit is a leading supplier of medium voltage products to the Nordic utility groups. It is an important supplier of low voltage products to the wholesalers and installers in Sweden.

The net sales for the power cable operation in 2012 was approximately SEK 1.5 billion.

Ericsson said this transaction will generate a net loss of approximately SEK -100 million, however NKT Cables will take over a factory in Falun, Sweden.