The addition of Texas-based wire and cable maker Encore Wire will enhance Prysmian’s North American presence and product portfolio.
Major cable manufacturer Prysmian will grow its North American presence with the acquisition of Encore Wire, a well-known U.S. wire and cable maker that sells through distribution, in a $4.2 billion deal.
The combination of Prysmian and Texas-based Encore Wire’s product offerings and customer relationships will enhance the company’s portfolio and geographic mix, Prysmian officials said in an April 15 news release.
Encore Wire — a manufacturer of a range of copper and aluminum electrical wire and cables, supplying power generation and distribution solutions — will complement Prysmian’s strategy to “increase exposure to secular growth drivers,” enhance its presence in North America, leverage Encore Wire’s operational efficiency, broaden Prysmian’s product offerings and generate about $148.7 million in run-rate EBITDA synergies expected within four years from closing, Prysmian officials said.
“We are pleased to have reached an agreement that reflects the remarkable value Encore Wire has created with our expansive single-campus model, low-cost production, centralized distribution and product innovation,” Encore Wire’s Chairman, President and CEO Daniel Jones said.
In fiscal year 2023, Encore Wire’s revenue was about $2.6 billion with EBITDA of $517 million.
Following transaction close, Prysmian expects to maintain a significant presence at Encore Wire’s vertically-integrated, single-site campus in McKinney, TX.
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