Italy's Prysmian at record high on 3.9 bln-euro deal to buy Encore Wire

Encore Wire

15/04/2024 10:52

** Prysmian  PRY.MI  jumps 6.2% to an all-time high of 51.54
euros on the Italian company's deal to buy US-based Encore Wire
 WIRE.O  for 3.9 bln euros ($4.15 bln) in enterprise value
    ** Prysmian to pay $290 cash per Encore Wire share, an 11%
premium to Friday's close
    ** Broker Equita says deal strengthens Prysmian's North
American exposure and high synergies between the two makes the
agreed ~16x price/earnings pre-synergies multiple "reasonable"
    ** Banca Akros estimates 15/13% EPS improvement
(pre-synergies) and a 29/27% improvement including synergies
    ** Prysmian expects run-rate pre-tax synergies of ~140 mln
euros within 4 years from closing, which is expected by H2 '24
    ** Prysmian shares had gained ~18% this year through Friday,
while Encore Wire has gained a little over 22% YTD

 (Reporting by Alberto Chiumento, editing by)
 ((Alberto.Chiumento@thomsonreuters.com;))