Prysmian (PRYMY.US) proposed to acquire Encore Cable (WIRE.US) for $290.00 per share in cash, with a total corporate value of about 3.9 billion euros.
The Zhitong Finance App learned that Prysmian (PRYMY.US) proposed to acquire Encore Cable (WIRE.US) for $290.00 per share in cash, with a total corporate value of about 3.9 billion euros. The deal had a premium of about 20% over the 30-day volume-weighted average price (VWAP) as of April 12, and about 29% compared to the 90-day VWAP premium as of April 12.
With this move, Prysmian expanded its business in North America and strengthened its investment portfolio, geographic mix and long-term growth drivers, benefiting from enhanced product supply and customer relationships.
The deal is expected to generate an EBITDA synergy of €140 million over four years.
The deal will be funded through cash on Prysmian's balance sheet (€1.1 billion) and newly committed debt arrangements (€3.4 billion).
According to estimates for the 12 months ending December 2023, the consolidated Group's net sales will exceed 17.7 billion euros, and the adjusted EBITDA will be approximately 2.1 billion euros.
The deal is expected to close in the second half of 2024.
According to the terms of the deal, Encore Cable may require a third party to provide an alternative acquisition plan within 35 days of execution of the merger, but there is no guarantee that there will be a better plan.