Platinum Equity said Monday that it signed a definitive agreement to purchase controlling interest in Rio Tinto's Alcan Cable division, which makes aluminum cable products.

Financial terms were not disclosed, but the deal gives billionaire Tom Gores' Beverly Hills company a 56 percent ownership in the division. After the transaction closes, Platinum will assume management control of Alcan Cable, which is based in Atlanta.

Rio Tinto, a Melbourne, Australia company that is the world's second largest miner, will retain a minority interest and will continue to be a large supplier of aluminum rod and molten aluminum to the business.

"This transaction offers a unique divestiture solution to Rio Tinto," said Brian Wall, the partner at Platinum who is leading the transaction. "Platinum will acquire a majority stake in a non-core asset and provide Rio Tinto an opportunity to participate in the future recovery of the business without having to manage that recovery themselves."

Alcan Cable sells to utilities and to residential and non-residential construction customers. It has seven production sites in the United States, Canada and China.

For reprint and licensing requests for this article, CLICK HERE.