A maxi operation worth 3.9 billion euros is what led Prysmian, the Italian group, world leader in the production of cables for telecommunications and energy, to acquire the US manufacturer Encore Wire, specialized in copper and aluminum cables. In this way the group led by designated CEO Massimo Battaini grows and strengthens itself in a strategic market such as North America and expands its product range.
The price was set at 290 dollars per share (272.15 euros), with a 20% premium on the average price of the 30 days preceding April 12th. In 2023, Encore Wire achieved revenues of approximately $2.6 billion (€2.44 billion) and a gross operating margin of $517 million (€485.19 million). The operation creates a group capable of generating a turnover of over 17.7 billion, with a gross operating margin of 2.1 billion euros. Stock market rally, with an increase of +6.88% in the middle of the day.
From cables to connectivity
«The acquisition of Encore Wire represents a milestone for Prysmian and a unique strategic opportunity to create value for our shareholders and customers – commented Battaini -. Thanks to this acquisition, Prysmian will increase its position in North America, further improving the geographic and business mix and strengthening the company’s exposure to long-term trends».
“This transaction maximizes value for Encore Wire shareholders and provides them with a substantial share premium over stock prices,” said Daniel L. Jones, president and chief executive officer of Encore Wire. Encore Wire and Prysmian are two complementary organizations and we are confident that Encore Wire will have a bright future as part of the Prysmian group.”
Following the closing of the transaction, Prysmian expects to maintain a significant presence at Encore Wire’s single-model, integrated site in McKinney, Texas. The Milan-based company will announce its 2023 results on Thursday.
Last week the group had completed another operation, this time in the field of connectivity, announcing that it had signed an agreement for the acquisition of Warren & Brown Technologies, an Australian leader in connectivity products for telecom networks. The price of the acquisition was not disclosed.
April 15, 2024 (changed April 15, 2024 | 1:50 pm)
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Tags: Prysmian maxi operation USA buys copper aluminum cables Encore Wire billion
