ADC sells divisions
Sherri Cruz
Star Tribune
Published Sep 6 2001
ADC Telecommunications is shrinking yet again -- in more
ways than one.
Platinum Equity, a technology holding company, announced
Wednesday that it acquired two of ADC's business units for an
undisclosed amount.
It purchased the Access Products Division and the Broadband
Wireless Group, which combined employ about 350 people,
none of whom are based in the Twin Cities.
The sale is not a surprise -- ADC announced its intentions to
begin selling product lines a few months ago.
'We have some additional product lines we're marketing,' said
Rob Clark, spokesman for ADC. He wouldn't say what those
were but said the company is focused on four areas: optics,
digital subscriber line, cable network products and software.
Those areas fall under ADC's two remaining business groups:
broadband connectivity products and integrated solutions.
By the end of this fiscal year, ADC intends to be fully morphed
and divested, with 9,500 employees, Clark said.
As ADC's stock price continues to fall -- closing at $3.99
Wednesday, down 9 cents -- companies such as privately held
Platinum Equity are sweeping up. The company, based in Los
Angeles, buys divisions of larger companies and spins them off
as stand-alone entities. ADC's two divisions are Platinum's
12th and 13th acquisition in the past year.
'It's been a good time for us,' said Alanna Chaffin,
spokeswoman for Platinum Equity.
ADC also said it is selling its two manufacturing sites in
Shakopee's Valley Green Business Park, a combined 670,000
square feet of space.
One facility is priced at $23 million, the other is $18 million.
Once ADC sells those two facilities it will resume building its
own Shakopee facility, which was mothballed last May as
ADC's financial woes began to mount.
The building will house the 1,100 ADC employees at the two
for-sale facilities. ADC has completed its move to its new Eden
Prairie headquarters.
-- Sherri Cruz is at scruz@startribune.com .
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