Nexans in Superior Essex JV to Create European Wiring Industry Leader
July 27, 2005
Cleary Gottlieb advised worldwide cable industry leader Nexans in a joint venture with Superior Essex that will combine both parties’ European winding wires businesses. Depending on closing adjustments, the transaction value will be €70 to €80 million. The transaction is expected to close by October.
In the joint venture, Nexans will contribute its winding wire production and distribution facilities based in France, Germany, the UK and Portugal, while Superior Essex will contribute its facilities in the UK. The joint venture will be owned 60% by Superior Essex and 40% by Nexans. As a part of the transaction, Nexans will receive approximately €35 to €40 million in cash and also enter into a medium-term copper supply agreement with the joint venture.
With expected revenues of €350 to €400 million, the joint venture will be the leader in the European winding wire market. Winding wires are bundled fine copper wires used in electric motors and other industrial products.