Nexans in Exclusive Negotiations to Sell Autoelectric to Motherson for 207 Million Euros
Cable manufacturer Nexans has announced entering exclusive negotiations with Indian group Samvardhana Motherson International Limited for the sale of its subsidiary Autoelectric, specialized in automotive wiring harnesses, for an enterprise value of 207 million euros. This transaction signifies the completion of the French group's transformation into a company exclusively focused on electrification.
Strategic Divestment of Autoelectric
Located in Floss, Germany, Autoelectric designs and manufactures cable harnesses and wiring systems for the automotive industry. According to the press release, the business generated approximately 749 million euros in annual revenue in 2024 and employs close to 14,000 people. This divestiture represents the final stage in Nexans' strategic transformation into a pure player in electrification, the group indicates. Since 2023, the company has divested several non-electrification activities, including Aginode, AmerCable, and Lynxeo. The proposed transaction is subject to customary regulatory approvals and would be structured as a series of share and asset sales. Based on this, the closure could occur by mid-2026, the press release specifies.
Financial Implications and Adjusted Outlook
In accordance with IFRS 5, the transaction will result in the classification of Autoelectric as assets held for sale in the 2025 consolidated financial statements, Nexans indicates. Consequently, the Industry and Solutions activities, including AmerCable, Lynxeo, and Autoelectric, will be classified as discontinued operations in the 2025 and 2024 financial statements. The group has adjusted its 2025 outlook to the new scope of continued activities. The adjusted EBITDA is now expected to be between 710 and 760 million euros, compared to a range of 810 to 860 million euros presented in July 2025 which included 12 months of Autoelectric and 6 months of Lynxeo. The free cash flow remains unchanged between 275 and 375 million euros. Nexans also confirms its 2028 objectives.
Significant Acquisition for Motherson
For the buyer, this transaction represents an important step, according to the terms of the press release. Motherson, present in over 40 countries, is among the world's largest manufacturers of cable harnesses and components for the automotive and mobility industries. The Indian group employs more than 190,000 people worldwide and is headquartered in Noida, India. The acquisition is expected to enable the group to support its clients with electrical harness solutions and to expand its global footprint to new sites, the press release states. The relevant works council will be informed and consulted as part of the proposed transaction. Detailed terms of the operation are not disclosed. Evercore acts as the exclusive financial advisor and Linklaters as the legal counsel for Nexans.
