Nexans, the worldwide leader in the cable industry has signed an agreement to acquire the Australian company Olex, a cable industry leader in the Australasia region, for A$ 515 million (approximately 310 million euros).
Olex employs 910 people with annual revenue of 330 million euros (240 million euros using Nexans’ constant copper rate) in 2006 and an EBITDA ratio of more than 15% at constant copper price (fiscal year ended at June 30, 2006).
Olex has three manufacturing sites based in Tottenham and Lilydale in Australia, and in New Plymouth in New Zealand, and a dozen sales offices in Australia, New Zealand, Singapore and China. Olex's activities are divided between markets for cables for power network infrastructure (33%), specialty cables for industry such as mining (24%), and cables for the building sector, both energy and telecom (43%).
According to Nexans’, the acquisition of Olex is in line with its strategy to expand in the Asia-Pacific area, a fast-growing area, and strengthens the geographical rebalancing of its Group. The percentage of Nexans’ sales made in this area will almost double from 6% to 11%.
The acquisition also reinforces Nexans’ core energy sector business, particularly in high-voltage and special cables for industry, due to Olex's broad product range. Olex, whose brand name and reputation are well-known, has a strong management team and 3 advanced production sites. Finally, the acquisition will offer Nexans’ synergies, mainly commercial, in particular through the pooling of Nexans sales teams in the world and Olex ones in the Asia-Pacific area.