Prysmian Group relaunches after $3bn acquisition
Prysmian Group is relaunching as a new organisation and beginning the integration of General Cable since closing its $3 billion acquisition.
Headquartered in Milan and with sales of over €11 billion the new group will hire approximately 30,000 employees at 112 plants and 25 R&D centres in over 50 countries. The company has also confirmed the appointment of 450 new managers at global level.
“We are proud to have established our second home region in the United States, contributing to the development of the country's economy with our best technologies and expertise. Today, we begin to operate as a single team with shared objectives,” said Valerio Battista, chief executive officer of Prysmian Group. “Integrating the two companies’ cultures, business segments, geographical markets, production facilities and staff functions. Protecting our business and creating value: these are our priorities.”
As a result of the integration North America will now account for approximately one third of the Group’s sales. In addition, the North American head office will be based in Highland Heights, Kentucky with an added 23 plants throughout the region operated by roughly 5,800 staff.
The new organisation will bring together the strengths of both Prysmian and General Cable based on centralised governance, integrated management of global businesses, clear results-based responsibilities, a focus on efficiency and technological innovation and a customer-centric approach. Overall the combining of General Cable will enable further expansion of the range of technologies and products offered by Prysmian Group.
Once the integration is complete the new organisation will operate under a new matrix model that is structured along 3 lines. The first being the group’s centralised functions, which aims to create a highly integrated single company. The second being regions, which ensures proximity to the market and the third being business areas - energy, telecoms and projects - which is responsible for product and cross-selling strategies.
“With the aim of identifying and retaining top talent, we conducted a thorough selection process based on the ‘best people for the job’ principle, ensuring equal opportunities to people from Prysmian and General Cable. The result is an international management team composed of 450 people who from the outset have been given clear responsibilities and precise objectives,” added Fabrizio Rutschmann, chief human resources officer of Prysmian Group.
Prysmian Group first announced plan to buy General Cable for $3 billion back in December 2017, with Battista describing the move as “strategic and unique opportunity to create value for our shareholders and customers.”
In March the deal was cleared by the US antitrust authorities, when the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act applicable to the proposed acquisition of General Cable Corporation expired on 7 March 2018.