Looking to boost its presence in North America, Italy-based Prysmian Group has inked a deal to acquire General Cable for $30 per share in cash, valuing the deal at about $3 billion.
The offer, which includes debt and certain other General Cable liabilities, represents a premium of about 81% to General Cable’s closing price of $16.55 per share on July 14, 2017 – the last day of trading before General Cable announced it was reviewing strategic alternatives.
Highlands Heights, Ky.-based General Cable develops, designs and manufacturers aluminum, copper and fiber optic wire and cable products for several sectors, including energy, communications, transportation, and construction.
Last month, General Cable reported a Q3 loss of 28 cents per share on operating income of $1 million, inclusive of $27 million in non-cash charges mostly related to the sale of operations in China. Adjusted earnings and adjusted operating income were 25 cents per share and $43 million respectively.
Based on pro forma aggregated results for the 12 months ended Sept. 30, 2017, the combined company would have had sales of more than €11 billion (US$13 billion) and adjusted EBITDA of approximately €930 million (US$110.1 billion)
The combined group will be present in more than 50 countries with approximately 31,000 employees, they said.
The boards of both companies have approved the proposed transaction, and expect the deal to close by Q3 2018.
“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,” Valerio Battista, Prysmian Group’s CEO, said in a statement. “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.”
Goldman Sachs International and Mediobanca – Banca di Credito Finanziario S.p.A are acting as financial advisors to Prysmian and Wachtell, Lipton, Rosen & Katz is acting as legal advisor. J.P. Morgan Securities LLC is acting as financial advisor to General Cable and Sullivan & Cromwell LLP is acting as legal advisor.