Nexans has announced the signing of the agreement to acquire La Triveneta Cavi to become a global electrification pure player. The strategic move will enable the acceleration of new sustainable offer launches in high-demand markets.

Feb 10, 2024

Nexans, a leader in the global energy transition, announced the signing of the agreement to acquire iconic La Triveneta Cavi, with recognized excellence within the European medium- and low-voltage segments. Based in Italy, La Triveneta Cavi primarily manufactures low-voltage cables for buildings, infrastructure, fire-retardant cable systems, and renewable applications across 30 countries.

La Triveneta Cavi operates a vertically integrated and best-in-class industrial footprint in Italy, including three cable production units featuring efficient logistical capabilities in Brendola and Tolentino, as well as one in-house copper drawing facility in Montecchio Maggiore. Outstanding strategic benefits of this transaction include:

Strategy execution: The proposed acquisition is a significant leap forward in Nexans’ strategy to become an electrification pure player, adding a widely recognized player with a long-standing tradition of best-in-class innovation and industrial platforms and a highly experienced management team with a strong track record.
Customer’s benefits: Enhancing Nexans’ building cable portfolio to address the major market shift toward fire safety. The global demand for fire safety cables is expected to grow at a c.+13 percent CAGR over the 2021-2030 period. Demand will continue to be supported by new safety regulations, electricity demand growth, and new build and renovation trends. Nexans will further develop La Triveneta Cavi’s experience in fire-retardant capabilities to expand the Group’s global fire safety offer.
A high-value transaction for Nexans’ shareholders: Adding La Triveneta Cavi will generate synergies and thereby value for shareholders. These synergies are expected to be captured through the integration of La Triveneta Cavi’s operations into Nexans, along with the deployment of Nexans’ proven proprietary programs, SHIFT Performance and SHIFT Prime, to enhance customer-centricity and value-added solutions. The transaction represents an acquisition multiple of 5.6x La Triveneta Cavi’s 2023 EBITDA presynergies and 4.6x post-synergies and will be high-single-digit accretive to earnings per share (EPS) from year one. Nexans’ financing of the acquisition will have a limited impact on leverage.

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Mr. Christopher Guérin, Nexans’ CEO said, “The acquisition of La Triveneta Cavi will be a major milestone in our journey to become a global electrification pure player. Italy is the third largest economy in the Eurozone, and the second largest manufacturing economy in Europe, with highly skilled talents, and renowned excellence in Research and Development and industrial processes. We are delighted to welcome La Triveneta Cavi’s 700 people within the larger Nexans family. La Triveneta Cavi will bring to Nexans more than 800 million euros in sales, 4 production units with technological platform capabilities to enhance our product portfolio, and will enable the acceleration of new sustainable offer launches in high-demand markets. The combination of Nexans and La Triveneta Cavi will be a real catalyst for a “Made in Italy” cable production in the Veneto region of Italy, that will bring significant investment and jobs for La Triveneta Cavi.”

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Mr. Mariano Peripolli, La Triveneta Cavi’s CEO, emphasized: “Nexans will bring significant resources to further expand La Triveneta Cavi’s operations, most notably to accelerate the deployment of the fire safety technology. By combining our entrepreneurial spirit with Nexans’ pioneering and agile culture, we are poised to drive innovation and create transformative impact. Indeed, we are proud to have found the right partner capable of enhancing the work done so far by our people and continuing the development of our company.” Closing of the transaction is subject to regulatory approvals and satisfaction of other customary closing conditions.