Investing.com– Cable manufacturer Encore Wire Corporation (NASDAQ:) said on Monday it had entered a definitive agreement with bigger Italian peer Prysmian SpA (BIT:) to be acquired for about $4.6 billion.
Pysmian will pay $290 in cash for each share in Encore, representing a premium of about 10% to Encore’s last close on Friday. Based on Investing.com data, the per share figure values Encore at about $4.6 billion.
Encore said its board of directors had unanimously approved the deal and that it recommended the takeover to its shareholders. The deal is expected to close in the second half of 2024, barring shareholder and regulatory approval.
Encore Wire marks Prysmian’s second major U.S. acquisition in recent years. The firm had bought General Cable for about $3 billion in 2018.
Prysmian- the world’s largest cable maker- has benefited greatly from a global push towards cleaner energy and the digital age.
The firm produces transmission cables that are crucial in creating electricity grids, and had last year announced a push into further its lead in the cable industry and strengthen its position in areas including data centers, grid management and EV charging.