Prysmian, the world’s largest cablemaker, will acquire U.S. firm Encore Wire for an enterprise value of about 3.9 billion euros ($4.15 billion), the two companies said on Monday.<\/p>\n
“Through this acquisition, Prysmian will grow its North American presence, enhancing its portfolio and geographic mix,” Chief Operating Officer and CEO-designate Massimo Battaini said.<\/p>\n
The deal comes as a surprise as the Italian company said last year it was focused on organic growth with scope for only “bolt-on” acquisitions in specific market segments or geographies using a war chest of around 1.1 billion euros.<\/p>\n
Battaini will be appointed CEO at the group’s shareholders meeting on Thursday, inheriting the role from Valerio Battista, who has led Prysmian since its creation in 2005 after a spin-off from the Pirelli group.<\/p>\n
It has since made two large acquisitions, Netherlands-based Draka in 2011 and U.S.-based General Cable in 2018.<\/p>\n
Based on the definitive merger agreement they announced on Monday, Prysmian will buy Encore Wire for $290 per share in cash, an 11% premium to the stock’s close on Friday.<\/p>\n
The deal will also allow Prysmian to broaden its product offering, the companies said.<\/p>\n
Encore Wire, which produces a broad range of copper and aluminum electrical wire and cables, supplying power generation and distribution solutions, posted revenue of around $2.6 billion last year with core earnings (EBITDA) of $517 million.<\/p>\n
Prysmian reported revenue of 15.4 billion euros and an adjusted EBITDA of 1.6 billion euros.<\/p>\n
Prysmian will finance the transaction through a mix of 1.1 billion euros in cash and newly committed debt facilities of 3.4 billion euros, the company said.<\/p>\n
Both boards have approved the transaction which is expected to close in the second half of 2024, subject to regulatory and shareholder approvals.<\/p>\n","protected":false},"excerpt":{"rendered":"
Prysmian, the world’s largest cablemaker, will acquire U.S. firm Encore Wire for an enterprise value of about 3.9 billion euros ($4.15 billion), the two companies said on Monday. “Through this acquisition, Prysmian will grow its North American presence, enhancing its portfolio and geographic mix,” Chief Operating Officer and CEO-designate Massimo Battaini said. The deal comes as a surprise as the Italian company said last year it was focused on organic growth with scope for only “bolt-on” acquisitions in specific market segments or geographies using a war chest of around 1.1 billion euros. Battaini will be appointed CEO at the group’s […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-801041","post","type-post","status-publish","format-standard","hentry","category-telecom"],"acf":[],"_links":{"self":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/801041","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/comments?post=801041"}],"version-history":[{"count":0,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/801041\/revisions"}],"wp:attachment":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/media?parent=801041"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/categories?post=801041"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/tags?post=801041"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}