Prysmian, a global leader in cabling solutions, has unveiled plans to acquire Encore Wire for $290.00 per share in cash, marking a significant milestone in its strategic growth journey. The deal, announced on April 15, 2024, emphasizes Prysmian's commitment to expanding its presence in North America and diversifying its business portfolio.

The acquisition, valued at approximately €3.9 billion, represents a premium of about 20% to the 30-day volume weighted average share price (VWAP) as of April 12, 2024. It is expected to enhance Prysmian's exposure to secular growth drivers and generate approximately €140 million in run-rate EBITDA synergies within four years of closing.

Encore Wire, a leading manufacturer of copper and aluminum electrical wire and cables, is known for its diversified product portfolio and operational efficiency. With fiscal year 2023 revenue of approximately $2.6 billion and EBITDA of $517 million, Encore Wire's capabilities align well with Prysmian's strategic objectives.

Massimo Battaini, Prysmian designated Group CEO, expressed enthusiasm about the acquisition, stating, "The acquisition of Encore Wire represents a landmark moment for Prysmian and a strategic and unique opportunity to create value for our shareholders and customers." He emphasized the benefits of the combined entity's enhanced product offerings and customer relationships.

Daniel L. Jones, Encore Wire’s Chairman, President, and CEO, echoed similar sentiments, highlighting the transaction's maximization of value for shareholders and the promising future ahead. The acquisition is expected to bring additional opportunities for employees and stakeholders, leveraging the strengths of both organizations.

The transaction, subject to regulatory approvals and customary closing conditions, is anticipated to close in the second half of 2024. Following the closing, Prysmian expects to maintain a significant presence at Encore Wire’s McKinney, Texas campus, ensuring continuity and integration within the combined entity's operations.

Source: prysmian.com