Hexatronic Group AB of Sweden, a manufacturer of fiber optic products, is acquiring Blue Diamond Industries LLC, the second-largest high density polyethylene conduit company in the United States.
Gothenburg-based Hexatronic will buy BDI for an enterprise value of $24.5 million with an additional purchase consideration of $2.5 million based on performance.
The sellers are four members of BDI's senior management team and they will continue in their current positions, according to Hexatronic.
BDI will not change its name after the deal closes in January and will continue operating with its headquarters in Lexington, Ky., and a recently renovated manufacturing facility in Middlesboro, Ky.
BDI CEO Sherri Simpson said Hexatronic gives Blue Diamond a boost into the growing microduct and fiber-to-the-home (FTTH) markets in the United States. Microducts are used as single ducts or bundled together with a protective oversheath in fiber networks.
"Microducts are a cost-effective, scalable method for deploying fiber to meet the increasing demand for bandwidth," Simpson said in an email to Plastics News. "Microfiber cable and duct technology was born in Europe and they are the experts and innovators in this technology."
Sweden has a mandate to provide 98 percent of the population with a 1Gbit connection by 2025, Simpson also said.
"The U.S. is just starting to use this technology for FTTH-1G to the home and 5G wireless mobile rollout," she added.
For the acquirer, the deal creates Hexatronic USA, a Lexington-based business with infrastructure solutions from the head end to users of the cloud, broadband, Wi-Fi, mobile and 5G data technology.