General Cable, Highland Heights, KY, has agreed to be acquired by Prysmian Group, Milan, Italy, in a transaction valued at $3 billion.
The transaction has been unanimously approved by both companies’ boards of directors and General Cable has recommended the deal to its shareholders. It should close by the third quarter of 2018, subject to shareholder approval, regulatory approvals, and other customary conditions.
“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,” said Valerio Battista, Prysmian Group CEO. “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.”
General Cable had said back in July that it was considering its strategic alternatives and would entertain a sale of the company. Prysmian has been in business for nearly 140 years and reported sales of over €7.5 billion ($8.9 billion) in 2016. It has 21,000 employees across 50 countries and 82 plants.
“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,” Michael McDonnell, General Cable president and CEO, said in a release. “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.”
Based on pro forma aggregated results for the twelve months ended September 30, 2017, the combined group would have had sales of over €11 billion ($13 billion) and approximately 31,000 employees.
