Nexans to Divest AmerCable for $280 Million
Deal News | Nov 08, 2024 | Globenewswire
Nexans, a prominent leader in the global energy transition, has announced the execution of an agreement to sell its AmerCable unit to Mattr for an enterprise value of US$280 million. The transaction, which is pending regulatory clearance, aligns with Nexans' strategic goal to focus on pure electrification activities. AmerCable, known for its resilient power cables catering to mining and oil & gas sectors, has been a part of Nexans since 2012. The business has undergone substantial transformation through Nexans' SHIFT program, reaching its full potential. Leaving the fold under new ownership will allow for further investment and growth. Mattr, renowned for its advanced materials technologies, views this acquisition as a strategic fit to boost its specialty cables operations in North America. The completion of the transaction is anticipated by year end, subject to standard regulatory approvals.
Sectors
- Energy & Power
- Manufacturing
- Materials Technology
Geography
- France – Nexans is headquartered in Paris and is a leading global player in the electrification sector.
- United States – AmerCable is based in Arkansas, USA, and serves key markets in North America with specialty cable solutions.
Industry
- Energy & Power – Nexans, a key player in electrification and energy transition, has operations spanning energy production, transmission, and distribution.
- Manufacturing – AmerCable specializes in manufacturing tough cables for challenging environments, relevant to industrial applications like mining and oil & gas.
- Materials Technology – Mattr provides advanced materials technologies and manufacturing expertise, catering to industries like energy, automotive, and transportation.
Financials
- 280 million – The enterprise value of the deal for Mattr to acquire AmerCable from Nexans.
- 234 million – AmerCable's reported sales for the year 2023.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Nexans | Selling Company | Company | Nexans is a global leader in cable manufacturing and energy solutions, focusing on electrification. |
| AmerCable | Target Company | Company | A manufacturer of electrical power cables for harsh environments, based in Arkansas, USA. |
| Mattr | Bidding Company | Company | A company specializing in advanced materials technologies, providing engineered solutions across various industries. |