Nexans Enters Exclusive Negotiations with Latour Capital
Nexans has announced its entry into exclusive negotiations with Latour Capital for the sale of its industrial cable division, Lynxeo, for an estimated Enterprise Value of €525 million. This initiative marks a significant step for Nexans as it refocuses on its core strategy of becoming a leading Pure Electrification Player.
Strategic Shift in Focus
The sale aligns with Nexans' vision to streamline its operations and dedicate resources more efficiently towards electrification solutions. Christopher Guérin, Chief Executive Officer of Nexans, expressed that this agreement is pivotal for the company’s electrification journey, establishing a path toward sustainable growth and leadership in the electrification ecosystem.
About Lynxeo
Lynxeo stands out in the specialty industrial cables sector, integrating fully into various infrastructure industries encompassing transportation, energy, and automation. With more than 100 years of history, Lynxeo has established a global footprint across Europe, Asia, and North America, employing around 2,000 individuals and posting annual standard sales exceeding €700 million.
Comments from Latour Capital
The partners at Latour Capital, Jean-François Beaudoin and Sylvain Dekens, describe Lynxeo as a unique opportunity in a highly fragmented market with substantial growth potential. Their confidence in Lynxeo’s capacity to thrive indicates a promising future under their stewardship.
Consultation and Regulatory Approvals
Nexans will engage with the relevant works council regarding this proposed transaction. Furthermore, the deal remains conditional upon customary regulatory approvals, with the potential closing of the transaction expected in the second half of 2025.
Financial and Legal Advisors
J.P. Morgan Securities Plc has stepped in as Nexans’ exclusive financial advisor, while Bredin Prat serves as legal counsel for the transaction. This collaboration aims to ensure a smooth negotiation and transition process.
About Latour Capital
Latour Capital, based in France, is an asset management company known for its entrepreneurial approach and profound operational experience. Managing assets worth €4 billion, Latour Capital is recognized for its active investment strategies and close partnerships with portfolio management teams. The firm focuses on companies with robust growth trajectories, leveraging the substantial experience of its founding partners in various business sectors.
About Nexans
With over a century of contribution to the electrification landscape, Nexans continues to innovate towards a sustainable future. The company employs approximately 28,500 professionals across 41 countries, propelling advancements in safe, sustainable, and efficient electricity solutions. Achieving €7.1 billion in standard sales recently, Nexans is a leader in cable system design and manufacturing across multiple sectors including PWR-Transmission, PWR-Grid, PWR-Connect, and Industry & Solutions.
Nexans was the pioneer in the industry to establish a foundation that supports sustainable initiatives, aiming to provide energy access to disadvantaged communities globally. Recognized on the CDP Climate Change A List for its climate action, Nexans has proudly committed to achieving Net-Zero emissions by 2050.
Frequently Asked Questions
What is the purpose of the negotiations between Nexans and Latour Capital?
The negotiations aim to finalize the sale of Nexans' industrial cable division, Lynxeo, which aligns with Nexans' strategy to focus on becoming a Pure Electrification Player.
What is Lynxeo known for in the industrial sector?
Lynxeo specializes in industrial cables, serving various industries including transportation, energy, and automation, with a strong global presence.
What are the expected benefits of the sale for Nexans?
The sale is expected to streamline Nexans' operations, allowing for better resource management and a concentrated effort on electrification strategies.
What is the timeline for the completion of the proposed sale?
The completion of the transaction is subject to regulatory approvals, with an anticipated closure in the second half of 2025.
Who are the financial advisors for this transaction?
J.P. Morgan Securities Plc is acting as the financial advisor, while Bredin Prat provides legal counsel for the transaction.
