Amphenol Corporation has explained main benefits from its $2.1 billion cash deal to buy mobile networks business from CommScope.
CommScope’s mobile networks business include its Outdoor Wireless Networks (OWN) segment as well as the Distributed Antenna Systems (DAS) business unit. These combined businesses are expected to have full-year 2024 sales and EBITDA margins of approximately $1.2 billion and 25 percent, respectively.
Approximately 4,000 employees from CommScope’s mobile networks business will join Amphenol. WALLINGFORD, Conn-based Amphenol has reported sales of $3.26 billion during the first-quarter of 2024.
Andrew products attact
This acquisition of former Andrew Corporation portfolio of products from CommScope supports Amphenol’s long-term growth and balanced end market exposure across all areas of the electronics market, Amphenol President and Chief Executive Officer, R. Adam Norwitt, said.
“This transaction allows CommScope to strengthen its CommScope NEXT priorities with its remaining segments and business units,” said Chuck Treadway, CEO of CommScope. The sale is expected to close within the first half of 2025.
OWN provides wireless infrastructure for mobile networks, including macro and small cell site solutions. The DAS business, a part of its Networking, Intelligent Cellular & Security Solutions segment, provides solutions for cellular infrastructure inside venues, campuses and enterprises.
Buys CIT business
In March, Amphenol completed the acquisition of the Carlisle Interconnect Technologies (CIT) business from Carlisle Companies. The CIT business is expected to have full-year 2024 sales and adjusted EBITDA margin of approximately $900 million and 20 percent, respectively.
CommScope sales drop
CommScope earlier said its sales declined 30 percent to $1.17 billion in Q1 2024 due to lower net sales in the CCS, NICS, OWN and ANS segments across all regions.
CCS sales of $604.7 million decreased 26.4 percent driven by a decline in Broadband. NICS sales of $180.3 million decreased 36.6 percent driven by declines in Ruckus and Intelligent Cellular Networks. OWN sales of $196.0 million decreased 24.1 percent primarily driven by declines in Base Station Antennas and HELIAX product sales. ANS sales of $187.4 million decreased 37.6 percent driven by declines in Access Technologies and Broadband Network Solutions.
On January 9, 2024, CommScope completed the sale of its Home business to Vantiva SA.
Baburajan Kizhakedath
