ADC completes acquisition of KRONE, creating a leading global network infrastructure company

May 18, 2004

2 Min Read

MINNEAPOLIS -- ADC (Nasdaq:ADCT, today announced that it has completed the acquisition of the KRONE Group, a leading global supplier of copper- and fiber-based connectivity solutions, cabling products and services used in public access and enterprise networks by many of the world's leading organizations, from GenTek Inc. (OTCBB:GETI).

"Acquiring KRONE is strategic for ADC as we renew our focus on our core business and expand our global scale. This acquisition makes ADC the leading global network infrastructure company providing comprehensive product and service solutions for communications service providers and enterprise networks," said Robert E. Switz, president and CEO for ADC. "From the time we announced the acquisition on March 25, 2004, the employees of both companies have been actively planning the successful integration of ADC and KRONE. Now that the closing is complete, we can hit the ground running with the finest talent and expertise in the delivery of global network infrastructure products and services to our customers."

The acquisition is valued at approximately $350 million in which ADC paid net cash of approximately $294 million and assumed certain defined liabilities consisting principally of KRONE's pension obligation for its German workforce. ADC expects to take a charge for various acquisition-related expenses the amount of which has not been determined at this time. Excluding the charge and amortization of acquisition-related intangibles, ADC expects the acquisition to be accretive to earnings per share in 2004. ADC will file a Form 8-K with the SEC within 75 days of the closing that will contain more details of the KRONE acquisition, including audited historical financial statements of the KRONE business and pro forma historical financial statements of ADC that include the KRONE business.

ADC Telecommunications Inc.

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