Clearfield Announces Divestiture of Nestor Cables Business

Core Viewpoint - Clearfield, Inc. has divested its Nestor Cables business through a management buyout, allowing the company to sharpen its focus on its core operations and pursue higher-return opportunities [1][3]. Company Overview - Clearfield, Inc. is a leader in Community Broadband fiber connectivity, designing, manufacturing, and distributing fiber optic management, protection, and delivery products for various communication networks [5]. - The company is headquartered in Minneapolis, MN, and deploys over a million fiber ports annually [5]. Nestor Cables Business - Nestor Cables specializes in designing and manufacturing fiber optic cables and connectivity accessories, serving the European market with complete solutions for fiber optic networks [2]. - The business employs approximately 100 individuals in Finland and Estonia and will continue to supply certain products to Clearfield [2]. Transaction Details - The sale of Nestor Cables is expected to result in a one-time charge in Clearfield's fiscal fourth quarter of 2025, but it will have minimal cash impact [3]. - The transaction is anticipated to be accretive to Clearfield's operating margin and profitability moving forward [3]. Management Commentary - Clearfield's President and CEO, Cheri Beranek, emphasized that the divestiture allows the company to streamline its manufacturing process and reduce costs, aligning with the Build America, Buy America (BABA) requirements [3]. Advisory Role - Oaklins Finland Ltd acted as the financial advisor to Clearfield during this transaction [4].