Nexans Solidifies Its Focus on Electrification Through Sale
Nexans has reached a significant milestone in its journey towards greater efficiency and sustainability by finalizing the sale of its industrial cable division, Lynxeo, to Latour Capital for an impressive Enterprise Value of €525 million. This strategic move emphasizes Nexans’ commitment to honing in on its core electrification business. The decision to divest Lynxeo marks a critical step in Nexans' broader strategy to position itself as a leader in the electrification space.
Leadership Quotes Highlighting Strategic Direction
In discussing the sale, Christopher Guérin, the Chief Executive Officer of Nexans, expressed his enthusiasm, stating that the closure of this deal would streamline operations and enhance resource allocation. He emphasized the company’s long-term vision for sustainable growth, positioning Nexans as a leader in the electrification ecosystem. Guérin highlighted his confidence in Latour Capital, noting that with their guidance, Lynxeo is poised for significant innovation and growth in the future.
Understanding Latour Capital's Approach
Latour Capital is recognized as a dynamic player in the asset management scene in France and boasts a portfolio designed to foster companies with high growth potential both domestically and internationally. As a company managing assets worth €4 billion, Latour’s approach to investment is characterized by a close partnership with the management teams of their portfolio companies. Their two founding partners, Cédric Bannel and Philippe Léoni, bring extensive operational experience and a strategic vision that is anticipated to greatly benefit Lynxeo moving forward.
Strengthening Partnerships for Future Growth
Latour Capital’s unique structure includes a partnership that consists predominantly of former managers, amounting to about 50% of their team. This emphasis on operational expertise positions Latour well to nurture the growth of Lynxeo, ensuring that the company not only retains its innovative edge but expands its capabilities in the industrial cable sector.
Nexans' Commitment to Electrification
Nexans has long been committed to electrifying the future. The company, with a workforce of approximately 28,500 across 41 countries, is at the forefront of sustainable electricity solutions. With a reported €7.1 billion in standard sales recently, Nexans continues to lead in the design and manufacturing of high-quality cable systems across various sectors, including transmission, grid, and industrial solutions.
Achievements and Recognition
The company has established its presence not only as a market leader but also as a pioneer in supporting sustainable initiatives through its foundation, which aims to provide energy access to underserved communities worldwide. In recognition of its climate efforts, Nexans has earned a spot on the CDP Climate Change A List, underscoring its commitment to achieving Net-Zero emissions by 2050—all in alignment with the Science Based Targets initiative.
Contact Information for Interested Parties
Nexans remains open for inquiries and collaborations. For investor relations, interested parties can reach out to Audrey Bourgeois at +33 (0)1 78 15 00 43 or via email at audrey.bourgeois@nexans.com. For communication matters, Mael Evin from Havas Paris can be contacted at +33 (0)6 44 12 14 91, while Olivier Daban is available at +33 6 75 02 20 73 for further engagement.
Frequently Asked Questions
What is the value of the Nexans-Lynxeo sale?
The sale of Nexans' industrial cable division Lynxeo to Latour Capital was completed for an Enterprise Value of €525 million.
What is Nexans' business focus post-sale?
Nexans aims to enhance its focus on its core electrification business following the sale of Lynxeo, reinforcing its position as a leader in sustainable electricity solutions.
Who led the investment from Latour Capital?
Latour Capital, an independent French asset management company, is led by its founding partners, Cédric Bannel and Philippe Léoni, who have a rich background in operational management.
How has Nexans been recognized for its sustainability efforts?
Nexans has been recognized on the CDP Climate Change A List, highlighting its leadership and commitment to climate action and net-zero emissions by 2050.
How can investors get in touch with Nexans?
Investors can reach out to Nexans through Audrey Bourgeois via telephone at +33 (0)1 78 15 00 43 or email at audrey.bourgeois@nexans.com.
