French company Nexans has agreed to sell AmerCable, a manufacturer of electrical power, control, and instrumentation cables, to Mattr for an enterprise value of $280m.
AmerCable, known for its cables used in harsh environments, has been a key player in the power cable industry since 1922.
The company produces durable power cables that perform consistently over long periods, especially in the demanding environments of the mining and oil and gas industries.
Headquartered in Arkansas, US, AmerCable boasts a workforce of more than 300 employees.
Nexans CEO Christopher Guérin said: “This agreement aligns with our strategy to refocus on Electrification [segment] and simplify the group. Acquired in 2012, AmerCable has been a key pillar of our Industry & Solutions portfolio.
“The business went through a significant transformation over the last decade and in the last three years, with the implementation of our SHIFT programme, we have brought the business to its full potential and full capacity.
“It was therefore the appropriate time to look for a new owner that could invest and grow the business further as our cycle was successfully completed. Our AmerCable colleagues will join a company with a great strategic fit and focus on speciality cables in North America.”
The transaction is part of Nexans’ plan to position itself as a 'Pure Electrification Player'.
The completion of this acquisition deal is subject to customary closing conditions, including necessary regulatory approvals.
The transaction is anticipated to be finalised around the end of the year.
Mattr CEO Mike Reeves said: “AmerCable is a highly respected North American cabling company with exceptional brand and product development capabilities. We plan to grow the business further and expand its successful operations.”
For more than 50 years, Mattr has provided materials technologies and manufacturing expertise.
In February this year, Nexans reached an agreement to acquire La Triveneta Cavi, an Italian company specialising in low-voltage cables, for an undisclosed price.
