Italy’s Prysmian to buy General Cable in $3 bln deal

MILAN

Italian cable maker Prysmian has agreed to buy U.S. rival General Cable for $30.00 per share in cash, the company said in a statement.

The transaction values General Cable at approximately $3 billion, including debt and certain other General Cable liabilities, according to the statement.

The price is a premium of more than 80 percent to General Cable’s price last July, when it started a strategic review to identify a possible merger partner to boost growth and maximize shareholder value.

Prysmian, which makes cables for the energy and telecoms sectors, said the acquisition of the Kentucky-based group would strengthen its industry-leading position and increase its exposure to North America.

“The acquisition of General Cable represents a landmark moment for Prysmian Group and a strategic and unique opportunity to create value for our shareholders and customers,” said Valerio Battista, Prysmian Group CEO.

“Through the combination of two of the premier companies in the cable industry we will be enhancing our position in the sector, by increasing our presence in North America and expanding our footprint in Europe and South America.”

The deal is expected to be completed in the third quarter of 2018, according to the statement.