GCC agrees to sell ignition wire business in $71 million deal

General Cable Corporation has announced it has reached a definitive agreement to sell its North American automotive ignition wire business to Standard Motor Products, Inc. for cash consideration of approximately $71 million, the company says.

Completion of the agreement is subject to customary post-closing adjustments.

The company says it expects to close the sale in the near future. Proceeds will be used to reduce outstanding borrowings.

“We are executing our new strategic roadmap, and a key component of the roadmap is focusing and optimizing our portfolio of businesses,” says Mike McDonnell, president and chief executive officer.

“While the automotive ignition wire business has been a strong performing business for us over the years, we determined through our strategic review that it is not aligned with our strategic and financial criteria going forward. As previously communicated, we are focused on growing our businesses in the electric utility, communications and industrial markets where we have leading positions, scale and sustainable profitability.”

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