With this move, Prysmian expands its presence in North America and improves its portfolio, geographic mix and exposure to secular growth drivers, benefiting from an improved product offering and customer relationships.
The transaction is expected to generate €140 million in fully operational EBITDA synergies within 4 years.
The operation will be financed through a mix of liquidity on Prysmian’s balance sheet (1.1 billion euros) and new debt lines (3.4 billion euros).
Furthermore, based on pro forma aggregate results for the twelve months ended December 2023, the combined group would have recorded net sales of more than €17.7 billion and adjusted EBITDA of approximately €2.1 billion.
Following the closing, Prysmian plans to maintain a significant presence at Encore Wire’s single-site, vertically integrated campus in McKinney, Texas.
The transaction is expected to close in the second half of 2024, pending shareholder approval and regulatory approvals.
Additionally, under the terms of the agreement, Encore Wire may request alternative acquisition proposals from third parties during a 35-day “go-shop” period following the execution of the merger, but there is no guarantee of superior proposals.