Prysmian has completed the acquisition of US cables producer Encore Wire Corporation.
In accordance with the terms of the merger agreement entered by the parties on 14 April 2024, Prysmian has acquired all of the outstanding shares of Encore Wire’s common stock for $290 per share, in cash.
Prysmian will benefit from “enhanced cross-selling opportunities, as well as the efficiency and innovation within Encore Wire’s unique production, distribution process and service levels”.
The transaction also “strengthens the weight” of the North American business in Prysmian’s geographical footprint.
The combined business will be well-positioned to accelerate the electrification and digital transformation in North America, which includes the growth of data centres and upgrades to the power grid.
Prysmian chief executive Massimo Battaini said: “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, while ensuring we are best placed to capture the structural growth opportunities which are being driven by digitalisation 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 accelerate the transition towards a low carbon economy.
“We warmly welcome Encore Wire employees into our team and together, as a result of our team spirit, passion and innovative approach, we will become an even stronger leader.”
Encore Wire chief executive Daniel Jones said: “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, centralised distribution and product innovation.
“Encore Wire and Prysmian are two highly complementary organisations, 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 organisation.”
With the completion of the transaction, Encore Wire has become a privately held company, and therefore its shares will no longer be listed on NASDAQ or any other public market.