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Houston Wire & Cable Company (HWCC) has been acquired by OmniCable, LLC, with stockholders receiving $5.30 per share. Following the approval from HWCC stockholders on June 15, 2021, the merger marks the completion of the transaction initially announced on March 25, 2021. The merger aims to create a national leader in wire and cable redistribution, enhancing the complementary strengths of both companies. The combined entity will continue offering both brands and retain existing locations, promising to meet customer needs more effectively.
Houston Wire & Cable Company (HWCC) announced the postponement of its Annual Meeting of Stockholders, originally set for May 25, 2021, due to an impending merger with Omni Cable, LLC's subsidiary. The Board expects the merger to close in Q2 2021. A new date for the postponed meeting will be announced later in 2021 if the merger doesn't proceed. HWCC has been a key player in the industrial distribution sector for 45 years, providing wire and cable products across the U.S.
HWCC Stockholders to Receive $5.30 per Share in Cash
HWCC and OmniCable have announced a definitive agreement for OmniCable to acquire all outstanding shares of HWCC for $5.30 each, totaling $91 million. This price reflects a 39% premium over HWCC's closing price on March 24, 2021, and an 89% premium over the average price over the previous 12 months. The transaction was unanimously approved by HWCC's Board of Directors. Importantly, HWCC's stock will no longer be publicly traded post-transaction, which is planned to close after the Annual Meeting of Stockholders on May 25, 2021.
Houston Wire & Cable Company (Nasdaq: HWCC) announced the completion of its sale of the Southwest Wire Rope business for $5 million, excluding $2.9 million in trade accounts receivable, which HWCC retained. With net proceeds of approximately $3.4 million, the company aimed to reduce its revolver debt significantly. Following this transaction, HWCC's proforma revolver debt is estimated at $15.4 million, marking a reduction of $70.5 million compared to Q1 2020. This sale reflects HWCC's commitment to debt reduction and financial stability.
Houston Wire & Cable Company (Nasdaq: HWCC) announced the sale of its Southwest Wire Rope business for $5 million, excluding approximately $2.6 million of trade accounts receivable. The expected net proceeds will help reduce HWCC's Revolver debt, which has decreased substantially from $95.2 million to around $21.4 million as of January 13, 2021. The transaction is anticipated to close within the first quarter of the year. CEO James L. Pokluda III emphasized the importance of reducing debt to mitigate financial risks in uncertain times.
Houston Wire & Cable Company (Nasdaq: HWCC) announced the successful sale of its Southern Wire business to Southern Rigging Companies for $20 million, closing on December 31, 2020. Proceeds of approximately $18.1 million were used to significantly reduce debt. The company achieved a $66.4 million reduction in Revolver debt, lowering it from $95.2 million to $22.6 million by year-end. Total debt, including a $6.2 million Paycheck Protection Program loan, stood at $28.8 million. CEO James L. Pokluda III expressed satisfaction with the debt reduction while maintaining customer service quality.
Houston Wire & Cable Company (Nasdaq: HWCC) announced the sale of its Southern Wire business for $20 million, pending a working capital adjustment. The company plans to use the net proceeds to reduce debt. President & CEO James L. Pokluda III praised Southern Wire's leadership and service record. The transaction is subject to customary closing conditions and is expected to finalize by year-end.
Houston Wire & Cable Company (HWCC) reported its third-quarter 2020 results, showing a 5.2% increase in revenue to $70.2 million compared to Q2 2020. Operating expenses fell by 20.5% year-over-year, leading to a positive EBITDA of $0.4 million. The company successfully reduced revolver debt by 25.8% sequentially, totaling $55.3 million. Despite these improvements, HWCC reported a net loss of ($0.7 million), consistent with Q3 2019. The company continues to navigate economic challenges, focusing on profitability and cost controls.
Houston Wire & Cable Company (HWCC) announced it will release its Third Quarter 2020 results on November 5, 2020, after market close. The company has also stopped hosting quarterly earnings calls. With 45 years in the industry, HWCC is a major industrial distributor in the U.S., providing a wide range of products including various types of cable and wire. The firm boasts robust value-added services, such as same-day shipping and inventory management. The strategic location of their sales and distribution facilities enhances operational efficiency.
Houston Wire & Cable Company (HWCC) reported second-quarter results for 2020, revealing a revenue decline of 21.8% to $66.8 million and a GAAP net loss of $2.2 million, compared to a net income of $1.6 million in Q2 2019. The downturn is attributed to metals price deflation, a sharp reduction in oil and gas prices, and a significant recession affecting end markets. To mitigate financial strain, HWCC implemented a 20% reduction in operating expenses and aims to cut net debt to $40 million by year-end. The company targets a return to positive EBITDA in Q3 and profitability in Q4.
