Prysmian Group closes General Cable acquisition
Prysmian Group has now completed its acquisition of General Cable, the company has announced.
Prysmian Group signed the definitive agreement to acquire General Cable at the end of last year in a deal that valued the latter at $3 billion, including debt and certain liabilities. The transaction was approved by both boards, and at the time it was expected to close by the third quarter of 2018 (see Prysmian to acquire General Cable for $3B in cash).
Prysmian said the combination represents an ideal strategic fit that will better position the company to meet new opportunities and challenges in the evolving wire and cable worldwide industry. Both companies address the energy and communications markets and receive similar proportion of revenue from telecom cables. Created in July 2005, Prysmian Group was the result of a spin out of Pirelli’s cable and systems business from its parent company. The group went public in 2010, before acquiring Draka for $900 million in 2011 to become the world’s number one in this market.
A statement issued to the press regarding the closing said: ‘Pursuant to the terms of the merger agreement entered into among the parties on December 3, 2017, Prysmian has acquired all the outstanding shares of General Cable common stock for $30.00 per share in cash. With the completion of the transaction, General Cable has become a privately held company, and therefore its shares will no longer be listed on the NYSE or any other public market.’
