General Cable Corporation (NYSE: BGC) rose Monday as. Prysmian Group announced plans to acquire General Cable for $30.00 per share in cash.
The transaction values the Kentucky-based General Cable at approximately $3 billion, including debt and certain other General Cable liabilities, and represents a premium of approximately 81% to the General Cable closing price of $16.55 per share on July 14, the last day of trading before General Cable announced its review of strategic alternatives.
The transaction, which has been unanimously approved by each company’s Board of Directors and recommended to its shareholders by General Cable’s Board of Directors, is expected to close by the third quarter of 2018, subject to the approval of General Cable’s shareholders representing at least a majority of the outstanding shares, regulatory approvals, and other customary conditions.
Michael T. McDonnell, General Cable President and Chief Executive Officer, said, "This combination is an ideal strategic fit and ensures we are well-positioned to meet the future opportunities and challenges in the dynamic and evolving wire and cable industry.
"Together, we will be able to deliver a robust portfolio of products and services and new product innovation across the full breadth of the wire and cable industry globally. Importantly, Prysmian and General Cable have a shared vision and highly compatible cultures founded on similar values."
Based on pro forma aggregated results for the 12 months ended September 30, 2017, the combined group would have had sales of over €11 billion and adjusted EBITDA of approximately €930 million.
The combined group will be present in more than 50 countries with approximately 31,000 employees.
Shares in General Cable skyrocketed $7.35, or 33.7%, to $29.15 early Monday