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Italian cable maker Prysmian will acquire Encore Wire (WIRE) for an enterprise value of 3.4 billion euros ($3.64 billion), further fueling its global expansion, the companies announced on April 15, 2024.
Encore Wire provides a broad range of copper and aluminum electrical wires and cables, supplying power generation and distribution solutions, manufactured in America at their vertically-integrated, single-site, Texas campus.
“Through this acquisition, Prysmian will grow its North American presence, enhancing its portfolio and geographic mix,” Massimo Battaini said. Battaini will officially take up the role of Chief executive officer (CEO) from Valerio Battista, who has led Prysmian since its creation in 2005, at the company’s annual meeting on April 17.
During his earlier interviews, Battaini mentioned that going forward he’ll focus on increasing shareholder returns while selectively looking for deals to generate synergies for the world’s largest cable maker.
The cable maker, carved out of Pirelli in 2005, has grown both organically and externally, but acquisitions have played a pivotal role in the company’s history. It has made two large acquisitions, Netherlands-based Draka in 2011 and U.S.-based General Cable in 2018.
According to the terms of the agreement announced Monday, Prysmian will buy Encore Wire for $290 per share in cash, representing an 11.12% premium to the stock’s Friday close.
Prysmian is expected to finance the deal through a mix of cash on its balance sheet of about 1.1 billion euros, and newly committed debt facilities of about 3.4 billion euros.
The transaction expected to close in the second half of 2024 has been approved by the boards of both companies and is subject to regulatory and shareholder approvals.
For a comprehensive understanding of the deal, you may refer to the Deal Metrics page at the following link:
Deal Metrics for the acquisition of Encore Wire (WIRE) by Prysmian.
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