Houston Wire & Cable Co. (Nasdaq: HWCC), Houston, Texas, on Thursday announced that it has completed the sale of its Southern Wire business, an Olive Branch, Mississippi-based wholesale distributor of wire rope and rigging products, to Southern Rigging Companies for $20 million.
The sale closed on Dec. 31, 2020, and HWCC used the net proceeds of approximately $18.1 million to reduce debt.
“We are excited we were able to complete the Southern Wire sale in 2020 and I am pleased to report that the sale of this division, together with our prudent management of working capital and expense reduction initiatives, has allowed us to reduce our debt to $28.8 million at year end, down 70% from the peak in 2020,” said James L. Pokluda III, HWCC President & CEO. “In addition, we were able to achieve this debt reduction while maintaining our outstanding customer service.”
Click here to read MDM’s original report on this deal.
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