CommScope Announces Approach to Spin-Off its Household Networks Enterprise into Independent General public Business

HICKORY, N.C.–(Business enterprise WIRE)–CommScope Keeping Firm, Inc. (NASDAQ: COMM), a world wide chief in connectivity methods for communications networks, today declared its plan to spin-off its House Networks small business and other initiatives to reduce functioning fees in the course of the Business.

Together, the planned separation of CommScope’s Residence Networks company and operating expenditure reduction represent early ways in the Company’s CommScope Up coming strategy to enhance the organization portfolio, drive higher than-market expansion, and handle fees. The separation is supposed to be executed via a tax-absolutely free spin-off to CommScope shareholders to kind a new and independent publicly traded business. The separation is anticipated to be accomplished by the conclusion of the initial quarter of 2022.

“Since I joined CommScope final Oct, the Board and administration crew have been endeavor a thorough evaluate of our portfolio of belongings and how every single contributes to our lengthy-phrase expansion technique,” claimed Chuck Treadway, president and main executive officer. “As we proceeded with this assessment, it became very clear that the Residence Networks business’ unique system, advancement properties, investment decision requirements and returns on invested money are not aligned with the rest of our portfolio. We think that Dwelling Networks will be much better positioned to produce exceptional residence and client-oriented merchandise as an unbiased enterprise. In addition, we are shifting speedily to streamline costs to create greater financial versatility to invest in our development. We hope the value reduction actions we are having in core CommScope to, at a bare minimum, offset Property Networks’ modified EBITDA and make cost savings we can reinvest in our company, which ought to consequence in write-up-spin leverage within main CommScope at no much more than present-day levels.”

Mr. Treadway concluded, “With today’s bulletins, our CommScope Future strategy is properly underway, and, as we go ahead, expansion, expense control and portfolio optimization will go on to be our priorities. We continue being thrilled about CommScope’s opportunity, and with the main elements of our approach intact, we are assured in our potential to produce innovative methods for network convergence for clients all-around the earth.”

Compelling Added benefits of the Separation

The planned spin-off will let CommScope and Household Networks to emphasis on innovation and pursue strategic market alternatives, accelerating advancement and unlocking larger value for their clients. Key added benefits of the separation include:

• Building a clearer advancement trajectory for CommScope, as very well as higher prospect for margin growth, though concentrating on providing current market-main options in wireless communications, broadband shipping and company networking
• Lowering complexity in CommScope, making it possible for it to concentrate on the core factors of the portfolio that will push advancement in the evolution of the networks it serves
• Building a standalone House Networks enterprise, a top linked household solutions service provider with an optimized expense structure and concentrated R&D and Product sales groups, enabling an accelerated rate of innovation unlocking strategic benefit and advancement in a “Connected Home” long run
• Delivering Home Networks with larger focus and versatility to develop its very own technologies, go-to-sector system and a best-in-course production design to much better produce property and customer merchandise and
• Allowing for CommScope and Dwelling Networks to each individual go after individual procedures, developing two distinctive identities and far more specific financial commitment prospects, delivering Home Networks with bigger opportunities to entry money.

CommScope, Driving World wide Connectivity

Next the completion of the spin-off transaction, CommScope will be composed of the next 3 business enterprise segments:

• Broadband Networks: Committed to serving the telco and cable service provider broadband market as a main devices manufacturer. The phase is targeted on escalating its current portfolio and deployment of DAA and virtualized platforms and driving investments to broaden fiber ability, fiber connectivity and network orchestration.
• Venue and Campus Networks: Focusing on both of those public and personal networks for campuses, venues, info centers, and properties. Venue and Campus Networks is centered on driving general performance in its RUCKUS Wi-Fi 6 and cloud command platforms, ONECELL capabilities to capitalize on 5G advancement and virtualization, and driving high-density enlargement in data centers.
• Outdoor Wireless Networks: Targeted on the Macro and Metro Cell enterprises and developing metro mobile energy answers and modularity design innovation. The segment is also doing work on the growth of new technologies in cell internet site connectivity and other technologies to help telco carriers setting up their 4G and 5G networks.

CommScope will keep on to be led by Chuck Treadway, president and CEO, and its present-day administration workforce.

Residence Networks, a Major Service provider of Related House, Electronic Lifestyle, & Entertainment Answers

With its extended heritage of providing market place-major technologies and methods, Household Networks will be effectively positioned to supply outstanding home and consumer-oriented products and solutions and to unlock considerable worth throughout its broad products lines and purchaser foundation.

On completion of the separation, Joe Chow, Household Networks senior vice president, will grow to be the main executive officer of the stand-by itself Property Networks enterprise. The Board of Administrators, management, enterprise identify and headquarters will be introduced immediately after they are finalized. The new, independent company is envisioned to be outlined on the NASDAQ stock exchange upon completion of the separation.

Transaction Information

CommScope anticipates that the transaction will be in the type of a distribution to CommScope shareholders of 100% of the stock of Dwelling Networks, a new, impartial publicly traded organization, which is supposed to be tax-free to U.S. shareholders for U.S. federal revenue tax purposes.

CommScope at the moment expects the transaction will be concluded by the stop of the to start with quarter of 2022, matter to market place, regulatory and certain other situations, such as ultimate acceptance of CommScope’s Board of Directors. There can be no assurance about the ultimate timing of the proposed transaction or that the transaction will be concluded.

Advisors

J.P. Morgan is serving as economic advisor, and Alston & Bird and Baker McKenzie LLP are performing as authorized advisors to CommScope.

Meeting Connect with and Webcast

CommScope will host a convention simply call right now at 8:30 am ET to examine this announcement. The conference simply call will also be webcast.

To participate in the meeting connect with, dial +1 844-397-6169 (US and Canada only) or +1 478-219-0508. The convention identification variety is 5858113. Remember to plan to dial in 15 minutes right before the commence of the connect with to facilitate a well timed link. The dwell, listen-only audio of the simply call and corresponding presentation will be accessible as a result of a backlink on CommScope’s Trader Relations website page.

A webcast replay will be archived on CommScope’s web page for a minimal period pursuing the meeting call.

About CommScope:

CommScope (NASDAQ: COMM) is pushing the boundaries of know-how to produce the world’s most advanced wired and wi-fi networks. Our world wide team of employees, innovators and technologists empower consumers to anticipate what’s following and invent what’s feasible. Discover more at www.commscope.com.

Adhere to us on Twitter and LinkedIn and like us on Facebook.

Indicator up for our press releases and blog site posts.

Ahead Searching Statements

This push release or any other oral or written statements created by us or on our behalf could incorporate ahead-on the lookout statements that reflect our present-day sights with respect to long term events and fiscal performance. These statements might examine plans, intentions or anticipations as to potential ideas, traits, activities, outcomes of operations or money problem or otherwise, in every circumstance, based mostly on present-day beliefs and anticipations of management, as properly as assumptions designed by, and information at present accessible to, such administration and incorporate, with out limitation: statements relevant to the completion and timing of the proposed spin-off, the potential effectiveness of the House Networks and remaining CommScope corporations on a stand-on your own basis if the spin-off is concluded the outlook for Household Networks as a different small business if the spin-off is concluded the anticipated strategic, operational and competitive rewards of the proposed spin-off and the effect of the separation on CommScope and its stakeholders and estimates of future income, working margin, dollars stream, effective tax charge or other long run running performance or economical outcomes. These ahead-seeking statements are normally identified by their use of such terms and phrases as “intend,” “goal,” “estimate,” “expect,” “project,” “projections,” “plans,” “potential,” “anticipate,” “should,” “could,” “designed to,” “foreseeable future,” “believe,” “think,” “scheduled,” “outlook,” “target,” “guidance” and identical expressions, while not all ahead-seeking statements comprise these kinds of phrases. This checklist of indicative conditions and phrases is not meant to be all-inclusive.

These ahead-hunting statements are matter to many dangers and uncertainties, a lot of of which are outdoors our regulate, such as, without limitation, dangers linked to the planned spin-off of the Property Networks business, like uncertainty relating to regardless of whether these transaction will be commenced or accomplished and the timing and benefit of these types of transaction pitfalls associated to the opportunity separation of the Residence Networks organization our means to combine and completely understand the anticipated gains from prior or future divestitures, acquisitions or fairness investments (including challenges associated to the ARRIS acquisition) selling or discontinuing a person or additional of our item lines opportunity challenges in realigning worldwide manufacturing ability and abilities amid our global producing facilities or those people of our agreement producers that could impact our potential to satisfy customer needs for solutions doable upcoming restructuring actions our dependence on customers’ money paying on info and communication devices focus of gross sales among a confined range of clients and channel companions adjustments in know-how industry opposition and the ability to keep customers as a result of solution innovation, introduction, and advertising risks connected with our profits through channel companions adjustments to the regulatory atmosphere in which we and our consumers work products high quality or general performance problems and related guarantee promises our capability to keep productive administration information technologies techniques and to correctly put into action big methods initiatives cyber-stability incidents, which includes info protection breaches, ransomware or computer viruses the possibility our international production operations put up with production or delivery delays, producing issues in assembly consumer requires the possibility that interior creation potential or that of contract manufacturers may be inadequate to satisfy buyer desire or high-quality standards the use of open up expectations the lengthy-phrase affect of local weather improve alterations in cost and availability of critical uncooked resources, components and commodities and the opportunity effect on consumer pricing threats involved with our dependence on a restricted quantity of critical suppliers for sure uncooked materials and components the chance that agreement companies we count on face production, excellent, economic or other problems sizeable indebtedness and restrictive personal debt covenants our means to incur further indebtedness our potential to crank out hard cash to provider our indebtedness attainable future impairment prices for preset or intangible property, together with goodwill earnings tax level variability and capacity to recuperate amounts recorded as deferred tax assets our capability to catch the attention of and retain experienced essential staff members labor unrest obligations below our described benefit personnel reward designs necessitating strategy contributions in excess of latest estimates substantial international functions exposing us to economic, political and other challenges, including the affect of variability in overseas exchange premiums our potential to comply with governmental anti-corruption legal guidelines and restrictions and export and import controls all over the world our means to compete in global markets due to export and import controls to which we may be subject matter changes in the legislation and policies in the United States affecting trade, like the possibility and uncertainty linked to tariffs or a probable world wide trade war and probable adjustments to legislation and policies as a outcome of a new administration in the United States, that could affect our goods price tag of guarding or defending intellectual property prices and worries of compliance with domestic and international environmental legislation the effect of litigation and comparable regulatory proceedings that we are associated in or may perhaps come to be included in, such as the prices of this kind of litigation the scope, duration and impact of condition outbreaks and pandemics, these as COVID-19, on our business enterprise, which include workers, websites, functions, shoppers and supply chain risks involved with stockholder activism, which could induce us to incur significant price, hinder execution of our enterprise method and effects the investing worth of our securities and other things outside of our handle. These and other components are mentioned in bigger depth in our 2020 Annual Report on Sort 10-K and might be updated from time to time in our yearly stories, quarterly studies, present-day stories and other filings we make with the Securities and Trade Commission.

Even though the information contained in this press launch represents our finest judgment as of the day of this launch based on facts at present offered and affordable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be content. Supplied these uncertainties, we caution you not to put undue reliance on these forward-searching statements, which speak only as of the day manufactured. We are not enterprise any responsibility or obligation to update this info to reflect developments or details acquired after the day of this press release, apart from as normally might be expected by legislation.

Source: CommScope