General Cable Integration with Prysmian

General Cable Integration

OVERVIEW

Enhancing Worldwide
Leadership

The merger of Prysmian and General Cable represents a landmark and unique opportunity to create a truly global leader in the cable industry.

The merger with General Cable drives significant value creation for all stakeholders, driven by a larger scale, a more balanced geographical presence, an extended and synergic product portfolio supported by Prysmian’s proven execution capabilities.

Key Rational of the Merger

The combination of Prysmian and General Cable will enable the creation of a truly Global and Leading player in the Cable Industry, with approximately 11 billion Euro of annual turnaround and 30,000 employees, with presence in more than 50 countries worldwide.

An highly complementary geographical presence of Prysmian and General Cable increases the capability to exploit global trends, with a more balanced exposure between Europe and North America and a reduced risk of geographic overlap.

The combination of the highly complementary product portfolios of Prysmian and General Cable will allow to extend and complete the Group's offer, leveraging on the technological excellence achieved by each company in many business areas.

The integration between Prysmian and General Cable enables substantial synergies generation, leveraging on proven Prysmian's execution capability. The main synergies sources identified involve procurement centralization, overhead costs' reduction, manufacturing footprint optimization, net working capital management and financing cost reduction.

Highly complementary geographical presence enhancing global leadership in the cable industry, with major exposure increase in North America and expansion in Europe and Latam. A well-balanced global presence and large scale are key propellers for long-term value creation focused on profitable growth and financial discipline.

High Synergies Potential

The integration between Prysmian and General Cable enables substantial synergies generation, leveraging on proven management execution capability. A significant portion of cost savings is expected to be achieved within the first 3 years of the integration process. Additional opportunities from net working capital management and reduced cost of financing of the new Group.
Main sources of estimated cost synergies:

  • Procurement

  • Overhead costs saving

  • Manufacturing footprint optimization