Italian cable manufacturer Prysmian is reportedly nearing a takeover of US electrical maker Atkore. This potential acquisition aligns with Prysmian's stated strategy to pursue significant M&A opportunities, with CEO Massimo Battaini indicating a target enterprise value of around $4 billion for such deals. Prysmian had previously acquired Encore Wire in 2024 for an implied enterprise value of approximately $4 billion (€3.9 billion), and Battaini mentioned that future targets could be similar in size to Encore Wire.
Prysmian's CEO Massimo Battaini recently stated that the company has the financial strength to resume its M&A strategy and expects to announce attractive opportunities within the next 12 months. This comes as the company is also looking to secure long-term deals with hyperscalers, which are expected to increase optical cable capacity by 40%-50% and involve over $1.2 billion in investment over three years for more than $5 billion in revenue. These strategic moves are anticipated to help Prysmian exceed its 2026 adjusted EBITDA guidance of between $2.8 billion (€2.63 billion) and $2.96 billion (€2.78 billion).
Atkore recently reported strong fiscal second-quarter 2026 earnings, with an earnings per share of $1.23, surpassing the consensus estimate of $1.0799 by 13.9%. Prysmian's previous acquisition of Encore Wire was financed through a mix of cash on Prysmian’s balance sheet ($1.18 billion or €1.1 billion) and newly committed debt facilities ($3.64 billion or €3.4 billion). The Encore Wire transaction was expected to be accretive to Prysmian's EPS by approximately 30% including synergies, and 20% pre-synergies, and generated run-rate pre-tax synergies of about $150 million (€140 million) within four years.
This potential acquisition underscores Prysmian's aggressive growth strategy, combining organic expansion through hyperscaler deals with significant inorganic growth through M&A. The company's shares rose as much as 6.7% to a new record high after the CEO's comments regarding the M&A strategy and long-term agreements with hyperscalers, reflecting investor confidence in its future outlook. Prysmian aims to leverage its financial strength to enhance its market position and expand its offerings, particularly in key growth areas like data centers.
