With the move, Prysmian expands its North American presence, and enhances its portfolio, geographic mix, and exposure to secular growth drivers, benefiting from enhanced product offerings and customer relationships.
The transaction is expected to generate €140 million in run-rate EBITDA synergies within 4 years.
The transaction will be financed through a mix of cash on Prysmian’s balance sheet (€1.1 billion) and newly committed debt facilities (€3.4 billion).
Furthermore, based on pro forma aggregated results for the twelve months ended December 2023, the combined group would have posted net sales of over €17.7 billion and adjusted EBITDA of approximately €2.1 billion.
Upon closure, Prysmian expects to maintain a significant presence at Encore Wire’s vertically integrated, single-site McKinney, Texas, campus.
The transaction is expected to close in the second half of 2024, pending shareholder approval and regulatory approvals.
Additionally, as per the deal terms, Encore Wire may request alternative acquisition proposals from third parties during a 35-day “go-shop” period after merger execution, but there is no guarantee of superior proposals.