Posted January 14, 2021

Houston Wire & Cable to sell Southwest Wire Rope

Houston Wire & Cable Company has entered into an agreement to sell its Southwest Wire Rope business for $5 million.

The business provides lifting slings and wire rope and rigging products. The sale excludes approximately $2.6 million of trade accounts receivable, which HWCC will retain. 

“Southwest Wire Rope is a company that for over 50 years has been a leading supplier of quality lifting slings, wire rope and rigging supplies to the lifting industry. We wish them much success in the future. Proceeds from the sales of Southern Wire and Southwest Wire Rope allow us to reduce debt, which lessens financial risk in these uncertain times,” said James L. Pokluda III, HWCC president and CEO.

According to SEC filings, on Dec. 31, 2020, HWCC sold its Southern Wire business to Southern Rigging Companies for $20 million in cash.

As of Jan. 13, HWCC has reduced revolver debt to approximately $21.4 million, from a peak of $95.2 million in the first quarter of 2020.

The Southwest Wire Rope transaction is subject to customary closing conditions and is expected to close in the first quarter.