Major Transition: Nexans Sells AmerCable to Mattr
Nexans has announced a significant agreement to sell AmerCable to Mattr for a robust US$280 million, pending regulatory approval. This strategic move is part of Nexans' focus on refocusing its operations to enhance its position as a Pure Electrification Player.
Understanding AmerCable's Legacy
AmerCable has been a staple in the power cabling industry since 1922, delivering robust electrical power, control, and instrumentation cables designed to withstand extreme environments. With its base in Arkansas, USA, the company has developed a strong reputation, particularly in mining and oil & gas sectors. In its recent financial reporting, AmerCable showcased impressive standard sales of €234 million for the year, highlighting its strong market presence.
Nexans' Future-Focused Strategy
Christopher Guérin, CEO of Nexans, expressed the company's belief that this divestment aligns well with their long-term strategy of simplifying operations and concentrating on electrification. Since acquiring AmerCable in 2012, Nexans has transformed the business significantly, implementing strategic programs to maximize its potential. The time has now come to find a new owner who can further invest in and grow AmerCable, marking a pivotal chapter in the company's history.
Mattr's Vision for Growth
Mike Reeves, CEO of Mattr, emphasized the company’s commitment to enhancing AmerCable's brand and expanding its operational capabilities. Mattr, known for its advanced materials technologies, aims to infuse resources and growth strategies into AmerCable, propelling it into a new phase of innovation and market leadership.
Implications of the Sale
This sale will significantly impact the cabling landscape as Nexans transitions to sharpen its focus on sectors that align with its electrification goals. It also provides Mattr with an opportunity to broaden its portfolio and strengthen its position in the cabling market.
The Timeline for Completion
The transaction is expected to close by the end of the year, subject to customary conditions, paving the way for a seamless transition for AmerCable employees and stakeholders.
About Mattr and Its Focus
For over five decades, Mattr has dedicated itself to delivering innovative materials and manufacturing expertise across multiple industries. Its portfolio includes technological solutions and products that support a variety of infrastructure projects globally, which include markets such as energy, automotive, communication, and transportation. Mattr's diverse capabilities set a platform for successful growth in partnership with AmerCable.
About Nexans
For more than 100 years, Nexans has been at the forefront of the global electrification movement. With a workforce of nearly 25,000 across 42 countries, the company engages in the design and manufacture of cable systems and services. Its commitment to achieving carbon neutrality by 2030 reveals its dedication to sustainable practices and technological advancements that benefit a diverse array of sectors.
Contact Information
For inquiries, Nexans provides contact options for investor relations and communications:
Elodie Robbe-Mouillot - Tel: +33 (0)1 78 15 03 87, Email: elodie.robbe-mouillot@nexans.com
Communications: Emmanuel Guinot or Maëllys Leostic - Email: emmanuel.guinot@nexans.com, Tel: +33 (0)7 87 04 96 58
Frequently Asked Questions
What is the purpose of Nexans selling AmerCable?
Nexans is selling AmerCable to refocus on their core electrification strategy and streamline their business operations.
Who is acquiring AmerCable?
AmerCable is being acquired by Mattr, a company specializing in advanced materials technologies.
How much is the sale worth?
The sale agreement between Nexans and Mattr is valued at US$280 million.
What does the sale mean for AmerCable employees?
The transition aims to maintain stability and growth, offering new opportunities under Mattr's leadership.
What is Nexans' long-term strategy following this sale?
Nexans intends to concentrate more on electrification and carbon-neutral initiatives as its core business focus.
