Encore Wire (NASDAQ:WIRE) stock is rocketing higher on Monday following news of a major acquisition deal with Italian firm Prysmian.
This deal has Prysmian agreeing to acquire Encore Wire for $4.2 billion. That will have it paying $290 per share in cash for WIRE stock. This represents a 20% premium to the 30-day volume weighted average share price on Friday.
Massimo Battaini, CEO of Prysmian, said the following about the acquisition:
“The acquisition of Encore Wire represents a landmark moment for Prysmian and a strategic and unique opportunity to create value for our shareholders and customers […] Through this acquisition, Prysmian will grow its North American presence, enhancing its portfolio and geographic mix, while significantly increasing the exposure to secular growth drivers.”
Details of the WIRE Stock Deal
The acquisition of Encore Wire already has the unanimous support from both companies’ boards. However, it still needs approval from a majority of WIRE stockholders and regulators.
If all goes well, the two companies are expecting the deal to close in the second half of 2024. That would see WIRE stock stop trading after the acquisition is complete.
WIRE stock is up 12.2% as of Monday morning alongside the acquisition news. It also has more than 1.5 million shares traded as compared to a daily average of 177,000 shares.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
