Prysmian makes US play
Acquisition of General Cable Corp expected to close in Q3 2018
Prysmian Group is to acquire US outfit General Cable Corp for a cash purchase of $30 per share.
The deal values General Cable at approximately $3bn, including debt and other liabilities.
It represents a premium of approximately 81% to the General Cable closing price of $16.55 per share on 14 July – the last day of trading before the company announced its review of strategic alternatives.
The transaction has been unanimously approved by each company’s board of directors.
It is expected to close by the third quarter of 2018, subject to the approval of General Cable’s shareholders.
Prysmian Group chief executive Valerio Battista said: “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.
“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.”
The deal will be financed through a mix of new debt, cash and existing credit lines, Prysmian said.