Georgia-based Southwire Co. Inc. on Friday said it has agreed to buy smaller US rival Coleman Cable Inc. for about $492 million. The acquisition is aimed at expanding Southwire's footprint in the North American market.

According to a report by Reuters, the deal will increase Southwire's share of the automotive, construction and power market. It will also give the company access to new products such as wiring for power transformers. Southwire is one of the biggest electrical wire and cable makers in the US.

Southwire offered a price of $26.25 per share for Coleman. This is a premium of about 7% to Coleman stock's Thursday close. Including the assumption of Coleman's debt, the deal is valued at a total of about $786 million, the report said.

Coleman has manufacturing plants in North America as well as an engineering and sourcing office in Zhenzhen, China. It makes electrical and electronic wire and cable products for residential and commercial construction, industrial, OEM, and consumer applications, Reuters said. 

Coleman's management team will join Southwire after the deal closes. The deal is expected to close in the first quarter of 2014, the report said.