Canadian Electrical Industry News Week

Prysmian

December 4, 2017

Prysmian Group and General Cable Corporation have announced that they have entered into a definitive merger agreement under which Prysmian will acquire General Cable for $30.00 per share in cash. The transaction values General Cable at approximately $3 billion, including debt and certain other General Cable liabilities, and represents a premium of approximately 81% to the General Cable closing price of $16.55 per share on July 14, 2017, 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 the third quarter of 2018, subject to the approval of General Cable’s shareholders representing at least a majority of the outstanding shares, regulatory approvals, and other customary conditions.

“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,” said Valerio Battista, Prysmian Group CEO. “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.”

John E. Welsh, III, Non-Executive Chairman of the Board of General Cable, 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 maximizes value for our shareholders.”

Michael T. McDonnell, General Cable President and Chief Executive Officer, said, “This 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.”

Mr. McDonnell continued, “I am extremely proud of our people’s efforts to transform our business over the past several years, including rationalizing the asset base and refocusing on core businesses, streamlining our supply chain, and accelerating profitable growth and innovation in key segments. Today’s announcement is a testament to the team’s hard work and tireless dedication.”

Financial Highlights

Based on pro forma aggregated results for the twelve months ended September 30, 2017, the combined group would have had sales of over €11 billion and adjusted EBITDA of approximately €930 million. The combined group will be present in more than 50 countries with approximately 31,000 employees.

Prysmian expects the combined group to generate run-rate pre-tax cost synergies of approximately €150 million within five years following closing mainly from procurement, overhead costs savings and manufacturing footprint optimization. One-off integration costs are estimated at approximately €220 million.

The transaction is expected to generate EPS accretion1 in the range of 10-12% for Prysmian shareholders already within the first year following closing (excluding cost synergies and before related implementation costs).

Potential Equity Financing

The Board of Directors of Prysmian S.p.A. has requested the Group Chief Financial Officer to analyze the opportunity for Prysmian S.p.A. to implement over the next 12 months a rights issue or other comparable structures for an aggregate maximum amount of €500,000,000. 

 Electrician Forum Brought to You by Schneider Electric             

The Electrician Forum is a monthly column that provides valuable information to electricians and electrical contractors on current industry trends and concerns. 

Schneider ElectricSponsored by Schneider Electric

In this issue: 

Quite simply put if you feel that job site costing and quote development are a lot of work, you are right! To properly assess a job and estimate the required work time, product costs and various other expenses can take more time than is often feasible for a small company. You need to be spending your time completing projects, which can become difficult if you are spending your hours doing cost analysis. We learned this first hand in last month’s edition of the Electrician Forum when Steve Beeby of Beehive Electric discussed the balance required to own and operate an electrical contracting company.

read more...

Watch a portion of the interview conducted by Electrical Industry Canada with Steve Beeby of Beehive Electric

 

Fluke Hammon Healy

As our population grows and consumers continue to rely on technology for both essentials and comfort, the need for power quality has become vital. Fluke is a leader in this field, offering power quality training seminars, as well as employing power quality specialists with years of industry experience.

This month’s personal profile is a double feature of two of Fluke’s senior power quality specialists, Hilton Hammond and Frank Healy.

Hilton Hammond has been with Fluke since 1995, and in 2013 moved into his current position as Power Quality Business Unit Manager. He has a deep and thorough knowledge of power quality and related electrical instrumentation. 

Frank Healy, Power Quality Product Marketing Manager at Fluke since 2006, has been in the industry for well over three decades. He globally manages Fluke’s power quality products, including measuring instruments and precision power analyzers.

Read More



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