Cable company Prysmian has agreed a deal to buy US counterpart Encore Wire for $3.9 billion.
It has agreed to pay $290 per Encore Wire share – a 29% premium to the 90-day volume weighted average share price as of 21 April.
The deal – which still needs to be approved by Encore Wire shareholders – implies an enterprise value for the Texas-based company of approximately $3.9 billion.
Encore Wire makes copper and aluminium electrical wire and cables.
Prysmian claimed that the acquisition will enable it to increase its footprint in North America and broaden its product offering.
It will finance the transaction through a combination of cash and new debt facilities.
Each company’s board of directors has unanimously approved the transaction. Encore Wire’s board of directors has recommended the deal to the company’s shareholders.
The deal is expected to close in the second half of 2024 subject to a majority of Encore Wire shareholders approving the deal and regulatory approvals.
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