Cable companies consolidating as Prysmian acquires General Cable and Nexans invests

Early 2018 saw further significant developments in the market for cables for offshore windfarms, months after JDR in the UK was acquired

In December 2017, Prysmian Group and General Cable Corporation entered into a merger agreement under which Prysmian will acquire General Cable for US$30.00 per share in cash.

The transaction values General Cable at approximately US$3Bn, including debt and certain other General Cable liabilities, and represents a premium of approximately 81% to the General Cable closing price of US$16.55 per share on 14 July 12017, the last day of trading before General Cable announced its review of strategic alternatives.

The transaction, which has been unanimously approved by each company’s board of directors and recommended to its shareholders by General Cable’s board of directors, is expected to close by Q3 2018, subject to the approval of General Cable’s shareholders.

“The acquisition of General Cable represents a landmark moment for Prysmian Group and a strategic and unique opportunity to create value for our shareholders and customers,” Prysmian Group chief executive Valerio Battista said. “Through the combination of two of the premier companies in the cable industry, we will be enhancing our position in the sector by increasing our presence in North America and expanding our footprint in Europe and South America.”

Non-executive chairman of the board of General Cable John Welsh III said “Today’s announcement is the culmination of a thorough and robust review of strategic alternatives undertaken by the General Cable board of directors. We are confident that this transaction maximises value for our shareholders.”

General Cable’s president and chief executive Michael McDonnell said “The combination is an ideal strategic fit and ensures we are well positioned to meet the future opportunities and challenges in the dynamic and evolving wire and cable industry.

“Together, we will be able to deliver a robust portfolio of products and services and new product innovation across the full breadth of the wire and cable industry globally. Importantly, Prysmian and General Cable have a shared vision and highly compatible cultures founded on similar values.”

January 2018 saw Nexans acquire a controlling interest in BE CableCon, a Danish manufacturer and supplier of cable kits for leading wind turbine companies.

BE CableCon was founded in Viborg, Denmark, in 2007. It has established a reputation in the design, engineering and manufacture of cable kits that enable wind turbine companies to simplify the installation of the vital power, control and communication cable systems within their towers and nacelles.

The company’s kit range covers low voltage and medium voltage applications including connectors, preconnected and preassembled cable kits and customised packing for complete ready-to-install kits.

BE CableCon chief executive Klaus Moller will head the new Nexans subsidiary.

Nexans vice president, industry solutions and projects Alain Robic said “We have developed an excellent working relationship with BE CableCon as a subcontractor for our own kitting projects.

“Bringing them into the Nexans Group is a key step in our strategy to take greater control of critical elements in our value chain so that we can offer customers a complete engineered connection system. In addition to wind turbines, we will now be able to develop new growth opportunities for cable-kitting solutions in other industry segments,” said Mr Robic.

Late 2017 also saw JDR in the UK acquired by TFKable Group, a move that the company’s chief executive Richard Turner described as “a major milestone for JDR and a massive opportunity to underline the company’s commitment to the energy sector”.

“It’s a truly exciting time for JDR and for me as the new CEO. The acquisition is a great opportunity to elevate what we do to the next level,” said Mr Turner.

TFKable Group is one of Europe’s leading producers of cables and wires. Its global presence and experience and JDR’s technical capabilities and understanding of the energy market will enable the company to enhance its range of services and products Mr Turner said.