Mattr Agrees to Acquire AmerCable
Mattr Corp., Toronto, Ontario, Canada, has agreed to acquire AmerCable Incorporated, a globally recognized USA manufacturer of engineered wire and cable solutions used in mission critical applications. Mattr, through its subsidiary, has entered into a definitive agreement to acquire all of the outstanding shares of AmerCable from Nexans USA Inc. for a purchase price of US$280 million, or approximately C$390 million. This purchase price represents a multiple of approximately 5.0 times Adjusted EBITDA of the AmerCable business for the trailing twelve-month period ended June 30, 2024. The Transaction is subject to customary closing conditions including USA anti-trust review and approval. Upon closing of the transaction, which Mattr expects will occur the end of 2024, AmerCable will be incorporated into Mattr’s Connection Technologies reporting segment and will position the company as one of the premier, custom engineered cable manufacturers in North America.
“The pending acquisition of AmerCable will be a significant step forward in Mattr’s strategy to enhance our wire and cable business exposure within the large and growing USA market,” said Mike Reeves, Mattr’s President and CEO. “This transaction will broaden our existing portfolio of highly engineered low voltage electrical power, control and instrumentation cable solutions, while also adding medium voltage electrical power, control and instrumentation cable solutions and enhancing our North American manufacturing capacity, allowing Mattr to better serve customers in both Canada and the USA” Reeves continued, “Specialized wire and cable products are essential to the continued expansion and modernization of North American critical infrastructure, and this combination will position Mattr as a premier provider in this important sector. Working in partnership with our existing wire and cable business conducted through our Shawflex brand, the pending addition of AmerCable’s talented workforce, differentiated product portfolio, globally recognized brand presence and substantial USA manufacturing platform bolsters our mid and long-term wire and cable growth and margin profile outlook.”
Since 1922, AmerCable has been producing power cables designed to operate reliably over long periods of time in extremely harsh operating environments for mining, and oil & gas markets. Based in the El Dorado, AR, USA, with 300 employees, AmerCable reported in 2023 standard sales of €234 million.
www.mattr.com, www.shawflex.com, https://amercable.nexans.com/en/