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17 Jun 2002
Siemens AG will sell its entire fibre-optic cable and optical fibre business to Corning for approximately USD 1.4 billion.
Siemens plans to hand over its worldwide optical fibre business, including about 3300 employees, on 1 February 2000. Corning will acquire all sixteen sites, including five in Germany, four in other European countries, and production facilities in Egypt, India, Vietnam, Indonesia, China, Australia and Argentina. Corning plans to create a new operating unit, Corning Communications Europe, which will be headquartered in London.
The purchase price includes buyouts of the companies' two joint venture interests, Siecor Corporation and Siecor GmbH. It also includes assumed debts.
Corning plans to fund the transaction with proceeds from a common stock offering and from debt issuance. The US company hopes that this move will give it a strong competitive presence in Europe and allow it to become the leading supplier of the 'optical layer', where optical fiber and photonic devices join with optical cable, hardware and equipment.
With the sale, Siemens will have completed its divestment of its Communications Cables Division. The company will remain a preferred customer of Corning.
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