Prysmian S.p.A. entered into an agreement to acquire Encore Wire Corporation for $4.7 billion.
The transaction, which has been unanimously approved by each company?s Board of Directors and recommended to its shareholders by Encore Wire?s Board of Directors. The transaction is subject to approval of Encore Wire?s shareholders representing at least a majority of the outstanding shares, the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, regulatory approvals, and other customary closing conditions. Avenue Investment Management, acting on behalf of its partners and clients who are shareholders of Encore Wire, formally expressed its reservations regarding the proposed merger on April 15, 2024 where it considered that the offer undervalues Encore. The transaction is expected to close in second half of 2024.
Andor D. Terner, Will Becker and Viq Shariff of O?Melveny & Myers LLP acted as legal advisor and J.P. Morgan Securities LLC acted financial advisor and fairness opinion provider to Encore Wire. Adam O. Emmerich and Zachary S. Podolsky of Wachtell, Lipton, Rosen & Katz is acting as legal advisor and Goldman Sachs Bank Europe SE, Succursale Italia acted as financial advisor to Prysmian.