Encore Wire, a manufacturer of a broad range of copper and aluminum electrical wire and cables, supplying power generation and distribution solutions, has signed a definitive merger agreement to be acquired by Prysmian, a multinational company in Italy specializing in the production of electrical cable for use in the energy and telecom sectors and for optical fibers.
Prysmian will pay $290 per share in cash to Encore Wire, implying an enterprise value of €3.9 billion ($4.15 billion) for the company.
The transaction represents a premium of approximately 20 percent to the 30-day volume weighted average share price (VWAP) as of Friday, April 12, and approximately 29 percent to the 90-day VWAP as of the same date. It would allow Prysmian to increase its foothold in the North American market, its most profitable one, according to Reuters.
Law firm O’Melveny O’Melveny advised Encore Wire on the transaction, which is expected to close in second half 2024