Mattr's AmerCable Acquisition: A Strategic Move for Growth

Mattr Corp. (TSX: MATR) has announced a significant milestone in its strategic expansion with the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act) for its acquisition of AmerCable Incorporated (AmerCable). This regulatory approval paves the way for Mattr to acquire all outstanding shares of AmerCable from Nexans USA Inc. (EPA: NEX) for a purchase price of US$280M, expected to close around January 2, 2025. Concurrently, Mattr has converted 125,000,000 debt subscription receipts into 7.25% senior unsecured notes due April 2, 2031, utilizing the net proceeds to fund a portion of the AmerCable acquisition.

The acquisition of AmerCable is a strategic move for Mattr, as it significantly enhances its highly engineered wire and cable capabilities within the U.S. market and exposes the company to the global electrification movement. AmerCable's expertise in medium voltage electrical power, control, and instrumentation cables complements Mattr's existing low voltage portfolio, allowing the company to offer a broader range of electrification solutions across North America. This expansion will enable Mattr to better serve customers in both Canada and the U.S., tapping into significant untapped sales opportunities globally.

The pending acquisition of AmerCable will be a significant step forward in Mattr's strategy to enhance its wire and cable business exposure within the large and growing U.S. market. This transaction will broaden Mattr's existing portfolio of highly engineered low voltage electrical power, control, and instrumentation cable solutions, while also adding medium voltage electrical power, control, and instrumentation cable solutions and enhancing its North American manufacturing capacity. This will allow Mattr to better serve customers in both Canada and the U.S., positioning the company as a premier, custom engineered cable manufacturer in North America.

Mattr's acquisition of AmerCable is expected to create substantial long-term value for shareholders and be immediately accretive to the company's earnings per share (EPS), excluding expected synergies. The acquisition brings a talented workforce, a differentiated product portfolio, a globally recognized brand presence, and a substantial U.S. manufacturing platform to Mattr, bolstering its mid and long-term wire and cable growth and margin profile outlook.



In conclusion, Mattr's acquisition of AmerCable is a strategic move that aligns with the company's growth objectives. By expanding its product portfolio and manufacturing capabilities, Mattr will be better positioned to serve the growing demand for electrification in critical infrastructure sectors. This acquisition is expected to create substantial long-term value for shareholders and enhance Mattr's competitive position in the North American market. As the company continues to execute on its strategic plan, investors should monitor Mattr's progress and consider the potential benefits of this acquisition on the company's financial performance.