HICKORY, N.C., Sept. 26 /PRNewswire-FirstCall/ -- CommScope, Inc. , a world leader in cable and connectivity solutions, today announced that its wholly owned subsidiary, Connectivity Solutions Manufacturing, Inc. (CSMI), has entered into an agreement to sell real estate consisting of an approximate 580,000-sq. ft. building and approximately 70 acres at the CSMI manufacturing facility in Omaha, NE. The sales price for the building and land is $11,000,000. CommScope does not expect any material gain or loss related to this transaction.
Closing is expected to occur by August 31, 2006 and is subject to certain closing conditions including appropriate subdivision approval by local government officials.
"CommScope recently announced global manufacturing changes to reduce cost and improve manufacturing efficiency," said Richard Dall'Asen, President of CSMI. "As part of these initiatives, CSMI is consolidating production of certain products into one existing building at the Omaha facility. The sale of excess real estate will help us reduce overhead and better use our facilities."
In June 2005, CSMI entered into a separate agreement to sell a vacant 410,000-sq. ft. warehouse and approximately 42 acres at the CSMI manufacturing facility in Omaha. The sales price for the building and land is $10,500,000. Closing for this parcel is expected in the first half of 2006 and is subject to certain closing conditions.
Acquired in January 2004 when CommScope purchased the Connectivity Solutions business of Avaya Inc., the 2.4 million-sq. ft. Omaha facility currently manufactures SYSTIMAX(R) Solutions structured cabling and components for enterprise applications; ExchangeMAX(R) cable and apparatus primarily for telephone central office applications; and Integrated Cabinet Solutions (ICS), which are secure environmental enclosures for telecommunications carriers.
CommScope is a world leader in the design and manufacture of "last mile" cable and connectivity solutions for communication networks. Through our SYSTIMAX(R) Solutions and Uniprise(TM) brands we are the global leader in structured cabling systems for business enterprise applications. We are also the world's largest manufacturer of coaxial cable for Hybrid Fiber Coaxial (HFC) applications. Backed by strong research and development, CommScope combines technical expertise and proprietary technology with global manufacturing capability to provide customers with high-performance wired or wireless cabling solutions.
This press release includes forward-looking statements that are based on information currently available to management, management's beliefs, as well as on a number of assumptions concerning future events. Forward-looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, which could cause the actual results to differ materially from those currently expected. For a more detailed description of the factors that could cause such a difference, please see CommScope's filings with the Securities and Exchange Commission. In providing forward-looking statements, the company does not intend, and is not
undertaking any obligation or duty, to update these statements as a result of new information, future events or otherwise.
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