Encore Wire Agrees To Merger With Prysmian At $290/Share In Cash, Valuing The Company At €3.9B
Portfolio Pulse from Benzinga Newsdesk
Encore Wire (NASDAQ:WIRE) has agreed to a merger with Prysmian at $290 per share in cash, valuing Encore Wire at approximately €3.9 billion. This transaction represents a premium of about 20% to the 30-day VWAP and 29% to the 90-day VWAP as of April 12, 2024. The deal implies an Enterprise Value of €3.9 billion for Encore Wire, equating to multiples of 8.2x and 6.3x EV/2023A EBITDA with and without run rate synergies, respectively.
April 15, 2024 | 6:05 am
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Encore Wire is set to merge with Prysmian at $290 per share, a significant premium over its recent trading range, valuing the company at €3.9 billion.
The merger agreement with Prysmian at a substantial premium to recent trading prices indicates a positive outlook for Encore Wire's shareholders. The premium suggests that Prysmian values Encore Wire significantly higher than the market did prior to the announcement. This is likely to lead to a short-term increase in WIRE's stock price as the market adjusts to the news of the acquisition and its terms. The valuation at €3.9 billion and the multiples of EV/EBITDA further underscore the financial attractiveness of the deal for Encore Wire's investors.
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