Nexans SA (Euronext Paris: NEX) announced today it has entered into a Share Purchase Agreement with Xignux SA of Mexico to acquire Centelsa, a premium cable maker in Latin America active in the production of cables for Building and Utilities applications (the “Transaction”).
Centelsa, a Colombian based, iconic world class cable maker, has a total turnover of more than US$250 million and an Enterprise Value of US$225 million. Closing of the Transaction is subject to regulatory approvals and is expected to take place in the first half of 2022.
Christopher Guérin, Nexans CEO said:
“Centelsa acquisition is fully aligned with the Group’s strategic ambition to become a Pure Electrification Player and it enhances Nexans commitment to electrify the world. This world class, iconic South American operation further contributes to Nexans ability to serve renewable projects in the Andean Region and enhances the group capacity in our Building and Energy Distribution activity. This combination will be the stepstone to grow our ‘best-in-class’ solutions and unique premium brand.”
Sergio Valdes, Viakable-Centelsa CEO, emphasized:
“The Centelsa team has demonstrated, for more than six decades, professionalism in delivering high value to our customers. As a global player in energy transmission, Nexans is a great fit to lead the next phase of growth for Centelsa´s customers and employees. Jointly, there is a promising future ahead.”
Nexans expects to fund the acquisition with a mix of available cash and debt, and expects the proposed transaction to be accretive to earnings in the immediate aftermath of the acquisition.