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French cable manufacturer Nexans has completed the divestiture of AmerCable, a specialised manufacturer of electrical power, control and instrumentation cables, to Mattr for an enterprise value of $280m.
The strategic move aligns with Nexans' focus on its core electrification business and will allow the company to concentrate on its primary market segments. The company executed the agreement in November 2024.
The purchase price reflects a multiple of around five times the adjusted EBITDA [earnings before interest, taxation, depreciation and amortisation] for AmerCable's trailing 12-month period ending 30 June 2024.
AmerCable will now be part of Mattr's connection technologies segment.
Nexans CEO Christopher Guérin stated: “The completion of this transaction marks yet another significant milestone in our journey to refocus the group on electrification and simplify our portfolio.
“Over the past decade, AmerCable has been transformed into a high-performing business, achieving its full potential under our SHIFT programme. We thank our AmerCable colleagues for their dedication and contributions and wish them every success for their exciting next chapter.”
The acquisition brings together complementary core competencies, with both AmerCable and Mattr's Shawflex wire and cable business focusing on customised, high-margin solutions for complex customer challenges.
Mattr aims to expand its geographical footprint through this acquisition, extending its reach from Canada into the US market. This will provide both Shawflex and AmerCable with broader access to the North American electrification markets and open up new global sales opportunities.
The acquisition also broadens Mattr's product offerings, with AmerCable introducing medium voltage wire and cable capabilities to the company's portfolio. This will allow Mattr to offer a comprehensive range of electrification solutions across North America.
AmerCable is set to diversify Mattr's end-market exposure, adding valuable material technologies and certifications. It will also enhance the company's procurement scope and efficiency.
The sharing of best practices and technical expertise between Shawflex and AmerCable is anticipated to drive innovative product development and strengthen market access.
The acquisition also provides a foundation for future growth, with AmerCable's production site in El Dorado, Arkansas, and cable assembly site in Katy, Texas, joining Shawflex's modernised facility in Vaughan, Ontario.
This creates a strategic network of manufacturing facilities across North America, poised for further organic and acquisition-driven growth.