Prysmian Closes Encore Wire Purchase-July 2

Prysmian Group Completed the acquisition of Encore Wire in accordance with the terms of the merger agreement entered by the parties on 14th April 2024 by which Prysmian has acquired all of the outstanding shares of Encore Wire’s common stock for $ 290.00 per share, in cash.  Prysmian acquired Encore Wire for an estimated $4.2 Billion representing a multiple of 8.2x EV/2023A EBITDA and 6.3x EV/2023A EBITDA.

Excerpts - Massimo Battaini, Prysmian CEO, said: “This acquisition will significantly strengthen Prysmian’s leadership position in North America.   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.  Daniel L. Jones, Encore Wire CEO, said: “With the successful completion of the transaction with Prysmian, we are ready to begin an exciting new chapter in our company’s history. 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, centralized distribution and product innovation. Encore Wire and Prysmian are two highly complementary organizations, 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 organization.”

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.