NEXANS SA (EURONEXT PARIS: NEX) ANNOUNCED TODAY THAT IT HAS ENTERED INTO A SHARE PURCHASE AGREEMENT WITH XIGNUX SA DE MEXICO TO ACQUIRE CENTELSA, A PREMIUM CABLE PRODUCER IN LATIN AMERICA INVOLVED IN THE CONSTRUCTION AND PUBLIC SERVICES INDUSTRY (“THE TRANSACTION”).
The acquisition of this iconic Colombian cable manufacturer, which exceeds $ 250 million in sales, is for a company value of $ 225 million. The Transaction closing is subject to regulatory approvals and the fulfillment of certain precedent conditions that are common in this type of transaction; it is expected to take place in the first half of 2022.
Christopher Guérin, CEO of Nexans, mentioned: “The acquisition of Centelsa is fully aligned with the Group’s strategic ambition to become a Pure Electrification Player, as well as strengthening Nexans’ commitment to electrifying the world. This world-class operation, iconic in South America, expands Nexans’ capacity to serve renewable energy projects in the Andean region and expands the activity in Building and Energy Distribution. This combination will be the cornerstone for growing our world-class solutions and developing a unique premium brand.”.
Sergio Valdés, CEO of Centelsa and Viakable, emphasized: “For more than six decades, the Centelsa team has demonstrated professionalism in delivering high value to our clients. As a global player in energy transmission, Nexans will lead the next growth phase for Centelsa’s clients and collaborators. Altogether, there is a promising future”.
Nexans expects to fund the acquisition with cash on hand and anticipates that the proposed Transaction will drive earnings immediately after the acquisition.