Nexans to sell US low, mid-voltage cables unit to Mattr

French cable manufacturer Nexans SA (EPA:NEX) has agreed to sell its US-based unit AmerCable, which specialises in low and medium voltage electrical power, control and instrumentation cables, to Canadian energy and infrastructure technology company Mattr Corp (TSE:MATR).

The deal is worth USD 280 million (EUR 259.9m).

Active since 1922, Arkansas-based AmerCable serves a broad customer base within the critical infrastructure sector, including the mineral extraction, renewable power generation, general industrial and energy end markets. The business, which has 300 employees, booked EUR 234 million in sales in 2023.

AmerCable’s renewables business is focused on two major pillars -- solar and wind. The company specialises in photovoltaic power cables, offshore wind substations and support vessels. Among other contracts, it was hired to supply the export cable system for the 704-MW Revolution Wind Farm project offshore Rhode Island.

For Mattr, the acquisition will enhance its wire and cable business exposure within the US market and broaden its existing portfolio, the buyer said in a press statement.

“Specialised wire and cable products are essential to the continued expansion and modernization of North American critical infrastructure, and this combination will position Mattr as a premier provider in this important sector,” Mattr’s CEO Mike Reeves said.

Nexans bought AmerCable for USD 275 million in 2012.

“This [sale] agreement aligns with our strategy to refocus on electrification and simplify the group,” said Nexans’ CEO Christopher Guerin.

Subject to regulatory clearances, the sale is expected to be completed around the end of 2024.

(USD 1 = EUR 0.928)

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