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Prysmian acquires Encore

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Prysmian acquires Encore

Prysmian has acquired all outstanding shares of Encore Wire’s common stock. The new acquisition will strengthen Prysmian’s leadership position in North America.

Prysmian acquires Encore Wire Corporation in the USA

Encore Wire Corporation, located in McKinney, Texas, is a leading manufacturer of copper and aluminium electrical building wire and cable in the USA. Founded in 1989, the company specializes in producing wire and cable for residential, commercial, and industrial buildings, focusing on innovative manufacturing processes and advanced technology. The company’s technical expertise includes extrusion, stranding, and compound blending, ensuring high-quality, reliable products.

Encore Wire has built a strong market position thanks to its extensive product range, commitment to quality, and efficient production capabilities. They serve a broad customer base including wholesale distributors. Their state-of-the-art manufacturing facility, along with a robust logistics and distribution network, enhances their competitive edge. Additionally, Encore’s emphasis on sustainability and energy efficiency in production processes aligns with Prysmian’s ambitious sustainability goals and caters to increasing market demand for eco-friendly products.

Prysmian is set to benefit from enhanced cross-selling opportunities, as well as the efficiency and innovation in Encore Wire’s unique production, distribution process, and service levels. The combined business will be well-positioned to accelerate the electrification and digital transformation in North America, which includes growth of data centres and upgrades to the power grid. 

The transaction aligns with Prysmian's strategy to increase exposure to growth drivers in North America and improve operational efficiency. The acquisition also strengthens the weight of the business the region in Prysmian’s geographical footprint.

Prysmian's North American operations, based in Highland Heights, Kentucky, feature 28 manufacturing facilities, eight distribution centres, and six R&D centres, employing over 6,000 people. The company is also investing heavily in optical cable capabilities, with a $30 million investment in Jackson, TN, to meet the growing demand for fibre infrastructure, supporting the US Broadband Equity, Access, and Deployment (BEAD) program and other broadband development initiatives. 

BEAD, established under the Infrastructure Investment and Jobs Act, allocates $42.45 billion to expand high-speed internet access across the United States. It focuses on unserved and underserved areas. BEAD funds infrastructure deployment, mapping, and adoption initiatives, aiming to ensure all Americans have access to reliable, high-speed internet.

Several other initiatives are driving substantial growth in U.S. fibre networks. Three programs target rural and underserved areas. The Middle Mile Broadband Infrastructure Program funds expansion of middle-mile infrastructure to reduce network costs and improve service. The Rural Digital Opportunity Fund (RDOF) managed by the FCC aims to bring high-speed broadband to rural areas and The USDA ReConnect Program offers loans and grants to deploy broadband. ‘Build America, Buy America (BABA) Provisions, part of the BEAD program, require certain materials, like fibre optic cables, to be manufactured in the U.S., stimulating domestic production and job creation in the broadband sector.

“This acquisition will significantly strengthen Prysmian’s leadership position in North America while creating value for all stakeholders. Thanks to the complementary fit of Encore Wire with Prysmian’s existing North American business, we will be better placed than ever to address customers’ needs across the dynamic, highly efficient and growing North American market, while ensuring we are best placed to capture the structural growth opportunities which are being driven by digitalization and energy infrastructure."

“There is also a strong cultural fit between Encore Wire and Prysmian because of our shared spirit of innovation and commitment to accelerate the transition towards a low carbon economy. We warmly welcome Encore Wire employees into our team and together, as a result of our team spirit, passion, and innovative approach, we will become an even stronger leader.”

Massimo Battaini

Massimo Battaini

Prysmian CEO

“With the successful completion of the transaction with Prysmian, we are ready to begin an exciting new chapter in our company’s history.” 

“I am grateful for the hard work and commitment of our employees and proud of the remarkable value Encore Wire has created with our expansive single-campus model, low-cost production, centralized distribution, and product innovation. Encore Wire and Prysmian are two highly complementary organizations, and we look forward to leveraging our enhanced product offerings and strong customer relationships to drive even greater opportunities as part of a larger, global organization.”

Daniel L. Jones

Encore Wire CEO

With the completion of the transaction, Encore Wire has become a privately held company, and therefore its shares are no longer listed on NASDAQ or any other public market.