Prysmian recently agreed to acquire connectivity-technology provider Channell Commercial Corporation for $950 million. The deal also includes an earn-out of up to $200 million.
When announcing the acquisition, Prysmian pointed out it is the company’s “first major digital solutions transaction,” adding that it “will accelerate its journey from cable manufacturer to solutions provider. The combined portfolio of Prysmian and Channell solutions, along with Channell’s extended commercial reach and complementary R&D focus, will support the development of Prysmian’s North American footprint, positioning the business for the growth of data centers and the rollout of FTTX and 5G in the United States and Europe. Channell will be included in Prysmian’s Digital Solutions, which is part of its broader synergistic portfolio, including energy solutions.”
Channell, founded in 1922, is headquartered in Rockwall, Texas and has slightly less than 1000 employees. It has manufacturing facilities in Texas, Nevada, and California. Among Channel’s product and technology portfolio are fiber-optic products, vaults, thermoplastic enclosures and metal enclosures. Channell’s customers include telecommunications, broadband, utility, and power operators.
Prsymian chief executive officer Massimo Battaini commented about the acquisition, “Our journey from cable manufacturer to world-class solutions provider is accelerating, and thanks to strengthening in the connectivity solutions space, we will be best placed to capture growth in the market, which is being boosted by digitalization and the rollout of AI. We are strengthening our exposure to North America, while at the same time gaining know-how and a product portfolio which will enable us to be even more competitive across the globe. Channell are renowned for their excellence and share a spirit of innovation with Prysmian as we both offer best-in-class quality solutions that act as a driver for growth. I would like to thank CEO and owner Bill Channell Jr. for entrusting Prysmian with Channell’s next step. For generations, he and his family have built a market-leader and an outstanding culture of innovation, and together with our fiber-optic cables and portfolio of energy solutions, we will offer customers a true one-stop shop, while creating value for all stakeholders.”
Bill Channel Jr. added, “Today is an incredibly exciting day for Channell. I am confident that Prysmian is the right strategic partner to drive the next phase of growth for Channell. I know that Massimo and his team share in the vision that together, our two companies can accomplish more, and I am truly excited about the benefits the combination brings to Channell’d customers and employees. I want to thank the best-in-class employees, past and present, who have been part of the Channell family since Channell was founded over 100 years ago by my grandfather; you are, and have been, the driving force behind Channell’s success. Massimo and his team, together with myself and Channell president Chris Watson, will work toward combining the best of what our companies do well to expand Prysmian’s capabilities as a digital solutions provider. I believe strongly that Prysmian is the best new home for Channell and its employees, and will safeguard the Channell legacy for the next 100 years.”
The companies expect the deal to close in the second quarter of 2025.
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