Nexans has entered into an agreement to acquire Republic Wire, a strategic move designed to establish a significant manufacturing and distribution platform for Nexans in the United States. This transaction is a key component of Nexans' strategy to expand its geographic footprint into the large and rapidly growing U.S. market for low and medium-voltage cables, which is being driven by sustained demand from the residential, commercial, and data center sectors. The acquisition of the Ohio-based manufacturer complements Nexans' existing North American operations, including a recent Canadian acquisition, creating a more robust regional presence. A core element of the deal's rationale is gaining access to Republic Wire’s well-established nationwide sales agent and distributor network. Nexans plans to leverage this new platform for both organic and inorganic growth, introducing its broader portfolio of complementary products, such as medium-voltage cables and grid solutions, to new high-growth verticals. The combination is expected to generate substantial run-rate synergies, driven by cross-selling opportunities, the implementation of Nexans' proprietary manufacturing technologies, and industrial efficiencies related to purchasing scale and production optimization. Republic Wire's current management team will remain in place to lead the business, ensuring continuity and a successful integration.

REPUBLIC WIRE, which reported an EBITDA margin of LOGIN in 2027, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN to the average currently observed in the Industry & Manufacturing sector (11.0x).

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