Nexans to Acquire Republic Wire, Strengthening US Presence
Nexans has signed an agreement to acquire 100% of Republic Wire, an American manufacturer of low-voltage copper and aluminum wire products based in Cincinnati, Ohio. Valued at approximately 680 million euros, this acquisition marks a significant step in the group's geographic expansion strategy in the North American market.
Republic Wire, an Established Industrial Platform Since 1982
Founded in 1982, Republic Wire is a family-owned business operating from a single fully equipped site in Ohio. Over the last twelve months ending February 2026, the company generated a current revenue of approximately 5201.2 million euros. It has a 32,500 square meter manufacturing facility with a high level of automation, as well as a recently completed 30,000 square meter warehouse and distribution center. Republic Wire employs over 200 skilled workers and has finalized a significant expansion program that will be fully operational by the end of 2026, increasing its production capacity by about 30%. The company supplies electrical equipment distributors, network operators, and municipalities in the United States and Canada through a national network of 18 commercial agencies.
A Transaction Valued at 680 Million Euros with Estimated Synergies
The total enterprise value of the transaction is approximately 680 million euros, with an additional price component of up to 43 million euros payable in 2028 based on performance until the end of 2027. The enterprise value multiples are 10.3x the adjusted 2027E EBITDA before synergies and 7.6x after synergies in steady state. The financing will combine debt and available cash on the balance sheet. On a pro forma basis, Nexans' Net Debt to adjusted EBITDA ratio for 2025 is expected to be about 1.2x, then comfortably return below 1.0x by the end of 2028. Synergies are expected to reach full effect over three years, amounting to about 23 million euros, with approximately 50% realized in the first year, and implementation costs estimated at about 23 million euros. The transaction is expected to be immediately accretive to earnings per share before synergies.
Closing Expected at the Start of the Third Quarter of 2026
The closing of the transaction is expected at the beginning of the third quarter of 2026, subject to applicable regulatory approvals and other customary closing conditions. The current management team, led by Ron and Jeremy Rosenbeck, will remain in place. Nexans plans to maintain Republic Wire's operations at its current Ohio locations. The transaction structure could also generate long-term tax benefits for Nexans.
