Merger for Prysmian Group and General Cable

PRYSMIAN

Prysmian Group and General Cable Corporation have announced a merger agreement under which Prysmian will acquire General Cable for $30.00 per share in cash. Prysmian expects the combined group to generate pretax cost benefits of some € 150 mn euros within five years. This will mainly come from procurement, overhead costs and plant optimisation.

Valerio Battista

PRYSMIAN GROUP CEO

Prysmian’s sales come largely from energy and infrastructure, whereas General Cable’s revenue is mainly derived form the electrical utility business. The combined group is expected to generate around a third of its sales in North America, while Europe will account for around 54%, according to Valerio Battista, Prysmian Group CEO: “The acquisition of General Cable represents a landmark moment for Prysmian Group and a strategic and unique opportunity to create value for our shareholders and customers. Through the combination of two of the premier companies in the cable industry, we will be enhancing our position in the sector, by increasing our presence in North America and expanding our footprint in Europe and South America.”

 

“This combination is an ideal strategic fit and ensures we are well-positioned to meet the future opportunities and challenges in the dynamic and evolving wire and cable industry,” said Michael T. McDonnell, General Cable President and Chief Executive Officer. “Together, we will be able to deliver a robust portfolio of products and services and new product innovation across the full breadth of the wire and cable industry globally. Importantly, Prysmian and General Cable have a shared vision and highly compatible cultures founded on similar values. I am extremely proud of our people’s efforts to transform our business over the past several years, including rationalizing the asset base and refocusing on core businesses, streamlining our supply chain, and accelerating profitable growth and innovation in key segments.”

ABOUT THE MERGER

 

The deal is expected to close by the third quarter of this year and would create a group with combined sales of more than € 11 bn euros and adjusted core earnings (EBITDA) of about € 930 mn euros. Further synergies are expected. One-off integration costs are estimated to be some € 220 m. The transaction has been unanimously approved by both companies’ Board of Directors and recommended to shareholders by General Cable’s Board of Directors. The transaction values General Cable at approximately $3 ban, including debt and selected liabilities.

 

© Copyright Prysmian Group.

All rights reserved.

© Copyright Prysmian Group.

All rights reserved.