Prysmian Completes Acquisition of US Cables Producer Encore Wire Corporation
In a strategic move to bolster its North American presence, Prysmian Group has successfully acquired US-based cables producer Encore Wire Corporation. The acquisition, formalized through a merger agreement on April 14, 2024, sees Prysmian purchasing all outstanding shares of Encore Wire’s common stock for $290 per share in cash.
Key Benefits of the Acquisition
Prysmian stands to gain significantly from this acquisition through enhanced cross-selling opportunities and the efficiency and innovation within Encore Wire’s unique production and distribution processes. This transaction not only strengthens Prysmian’s footprint in North America but also positions the combined business to accelerate electrification and digital transformation across the region. This includes the growth of data centers and upgrades to the power grid.
Leadership Insights
Massimo Battaini, Prysmian’s Chief Executive, highlighted the complementary nature of the two companies:
“Thanks to the complementary fit of Encore Wire with Prysmian’s existing North American business, we will be better placed than ever to address customers’ needs across the dynamic, highly efficient, and growing North American market. We are best placed to capture the structural growth opportunities driven by digitalization and energy infrastructure. There is also a strong cultural fit between Encore Wire and Prysmian because of our shared spirit of innovation and commitment to accelerating the transition towards a low-carbon economy. We warmly welcome Encore Wire employees into our team, and together, we will become an even stronger leader.”
Encore Wire’s Chief Executive, Daniel Jones, echoed these sentiments:
“I am grateful for the hard work and commitment of our employees and proud of the remarkable value Encore Wire has created with our expansive single-campus model, low-cost production, centralized distribution, and product innovation. Encore Wire and Prysmian are two highly complementary organizations, and we look forward to leveraging our enhanced product offerings and strong customer relationships to drive even greater opportunities as part of a larger, global organization.”
Future Prospects
The combined capabilities of Prysmian and Encore Wire position the company to lead in the growing North American market, addressing the rising demand for electrification and digital infrastructure. The acquisition reflects Prysmian’s strategic vision to capitalize on structural growth opportunities driven by digitalization and energy infrastructure development.
Encore Wire Goes Private
With the completion of this transaction, Encore Wire has become a privately held company. Consequently, its shares will no longer be listed on NASDAQ or any other public market.
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Stay tuned for more updates on Prysmian’s projects and the evolving landscape of the cable industry. Together, we can drive the transition to a more connected and energy-efficient future.
Credit: [Image: Prysmian]