Bulletin: Italy-Based Prysmian SpA Plans To Acquire U.S.-Based Manufacturer Channell Commercial Corp. With A Mix Of Equity And Hybrids

This report does not constitute a rating action. MILAN (S&P Global Ratings) April 7, 2025--S&P Global Ratings said today that Italy-based cable manufacturer Prysmian SpA?s decision to acquire U.S.-based manufacturer of passive connectivity equipment Channell Commercial Corporation (Channell), for a total consideration of $950 million plus an earn-out of up to $200 million based on the target company?s EBITDA generation in 2025, would not materially affect the company?s deleveraging path. This is because we understand that the company targets to fund the transaction with a mix of debt, hybrid capital instruments, and a disposal of treasury shares. The deal remains subject to customary closing conditions, including customary antitrust clearances and it is expected to close during the second quarter of

...April 7, 2025 This report does not constitute a rating action. MILAN (S&P Global Ratings) April 7, 2025--S&P Global Ratings said today that Italy-based cable manufacturer Prysmian SpA's decision to acquire U.S.-based manufacturer of passive connectivity equipment Channell Commercial Corporation (Channell), for a total consideration of $950 million plus an earn-out of up to $200 million based on the target company's EBITDA generation in 2025, would not materially affect the company's deleveraging path. This is because we understand that the company targets to fund the transaction with a mix of debt, hybrid capital instruments, and a disposal of treasury shares. The deal remains subject to customary closing conditions, including customary antitrust clearances and it is expected to close during the second quarter of 2025. The company recently held its capital markets day, where it disclosed that for the 2025-2028 period it expects to cumulatively generate 5 billion of free cash flow, as per...

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