Nexans SA has entered into a Share Purchase Agreement with Reka Industrial Plc to acquire Reka Cables (the “Transaction”). This acquisition will strengthen Nexans’ position in the Nordics, notably in electricity Distribution and Usage.
Founded in 1961, Reka Cables is active in manufacturing low and medium-voltage cables for Usage and Distribution applications. With a turnover expected to exceed 160 million euros in 2022 and 270 people, the company is one of the leaders of the Finnish market operating in four countries and benefits from a premium reputation in the Nordics. In November 2021, it became one of the first cable manufacturers to become Carbon Neutral on scopes 1 and 2.
Nexans will acquire Reka Cables for an equity price of 53 million euros, including a financial net debt of 6.5 million euros as of the end of September 2022. Completion of the Transaction is subject to regulatory approvals and is expected to occur in the first half of 2023.
Christopher Guérin, Nexans CEO, said: “With a deep commitment to energy transition and carbon neutrality, Reka Cables is fully aligned with the Group’s strategic ambition to become a Pure Electrification Player committed to contributing to carbon neutrality by 2030. This premium Finnish operation will further contribute to Nexans’ ability to serve our Nordic customers with high-quality and safe cables in the region. I am convinced that this operation will benefit the teams of both Reka Cables and Nexans, with synergies and development opportunities ahead of them.”
Jukka Poutanen, Reka Cables’ CEO, emphasised: “The Reka Cables’ team has consistently delivered high-quality cables. As a global player in electrification and an active promoter of the energy transition, Nexans is a great fit for Reka Cables.”
Nexans expects to fund the acquisition with a mix of available cash and debt.
Image source: Courtesy of Nexans
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