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Offshore Wind Journal

Offshore Wind Journal

Prysmian to acquire General Cable

Tue 05 Dec 2017 by David Foxwell

Prysmian to acquire General Cable
General Cable announced a review of strategic alternatives earlier this year and is now being acquired by Prysmian

Prysmian Group and General Cable Corporation have entered into a merger agreement under which Prysmian will acquire General Cable for US$30.00 per share in cash.

The transaction values General Cable at approximately US$3Bn, including debt and certain other General Cable liabilities, and represents a premium of approximately 81% to the General Cable closing price of US$16.55 per share on July 14, 2017, the last day of trading before General Cable announced its review of strategic alternatives.

The transaction, which has been unanimously approved by each company’s board of directors and recommended to its shareholders by General Cable’s board of directors, is expected to close by Q3 2018, subject to the approval of General Cable’s shareholders.

“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,” Prysmian Group chief executive Valerio Battista, said. “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.”

Non-executive chairman of the board of General Cable, John Welsh III, said “Today’s announcement is the culmination of a thorough and robust review of strategic alternatives undertaken by the General Cable Board of Directors. We are confident that this transaction maximises value for our shareholders.”

General Cable’s president and chief executive Michael McDonnell, said “The combination is an ideal strategic fit and ensures we are well-positioned to meet the future opportunities and challenges in the dynamic and evolving wire and cable industry.

“Together, we will be able to deliver a robust portfolio of products and services and new product innovation across the full breadth of the wire and cable industry globally. Importantly, Prysmian and General Cable have a shared vision and highly compatible cultures founded on similar values.”

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