Nexans, the worldwide leader in the cable industry, today announced it has signed a agreement for the acquisition of the Italian company Intercond, a leading European manufacturer of special cables, mainly for industrial equipment including subsea activities.
The acquisition of this company, which sales totaled 60 million euros (at current metal prices) in 2007 and currently employs 150 people, will come as a complement to the Group's existing business units based in Europe, making of Nexans one of the worldwide leaders in both above mentioned activities.
The 90 million euros Enterprise Value agreed by both parties, corresponds to 5 to 6 times the expected 2008 EBITDA (before synergies).
This operation will be accretive in the first full fiscal year.
"This acquisition fits totally in the Group's strategy by increasing the portion of its business in high value-added special cables", said Gérard Hauser, Chairman and CEO of Nexans.
This operation is expected to close in the third quarter of 2008.