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Prysmian Group

#1022

Rank

$18.55B

Marketcap

IT Italy

Country

Prysmian Group
Leadership team

Mr. Valerio Battista (MD, CEO & Exec. Director)

Mr. Pier Francesco Facchini (CFO & Exec. Director)

Mr. Massimo Battaini (Group COO & Exec. Director)

Products/ Services
Telecommunications
Number of Employees
20,000 - 50,000
Headquarters
Milan, Lombardia, Italy
Established
1905
Net Income
500M - 1B
Revenue
Above - 1B
Traded as
PRY.MI
Social Media
Overview
Location
Summary
Prysmian S.p.A., together with its subsidiaries, produces, distributes, and sells cables and systems, and related accessories for the energy and telecommunications industries worldwide. The company operates through three segments: Projects, Energy, and Telecom. The Projects segment designs, produces, and installs high and extra high voltage cables for electricity transmission from power plants, and within transmission and primary distribution grids; high voltage cabling systems for terrestrial and submarine applications; submarine cable solutions for power transmission and distribution; data transmission cables; and umbilical cables, hoses, and electrical, optical, and signalling components for oil well management, as well as offers services for terrestrial and submarine interconnections between various countries and between offshore wind farms and the mainland, which is used for generation and distribution of electricity. The Energy segment includes trade and installers; power distribution and overhead transmission lines; industrial and network components for various industries, which comprise oil and gas, downhole technology, elevators, automotive, nuclear, mining, marine, water, and infrastructure sectors, as well as for renewable energy field, military, railways, and cranes; and provides asset monitoring solutions. The Telecom segment manufactures cable systems and connectivity products, such as optical fiber, optical cables, connectivity components and accessories, optical ground wires, and copper cables that are used in telecommunication networks. Prysmian S.p.A. was founded in 1879 and is headquartered in Milan, Italy.
History

The beginning

The company originated in 1879 as Pirelli Cavi e Sistemi. In 1881, it secured a contract to produce submarine telegraph cables for military engineering.In 1886, it opened a submarine cable production plant in La Spezia. It later helped to lay the entire Italian telegraph network on behalf of the Italian state-owned company Telegrafi dello Stato, and to install the electrical grid for domestic use in Milan. It also laid telegraph cables in the colonies of Italian East Africa.In 1925, it produced 5,150 km of submarine telegraph cabling for Italcable for communications between Italy and South America. Its collaboration with the Italian government continued with the laying of cables for the Italian interurban telephone network.

Prysmian

In 2005, Prysmian S.r.l. was created by Goldman Sachs after acquiring Pirelli & C. S.p.A's Cables and Systems business. After restructuring the organisation of the group's internal activities, the company decided to sell down its investment in the cable market. The figure negotiated was EUR 1.3 billion: Goldman Sachs gave Pirelli 225 million and the rest was a debt that would be paid off the back of the new business. The company, led by Valerio Battista from 2005, was then a public company.Since 3 May 2007, it has been listed on the Milan Stock Exchange and on 24 September 2007 it joined the S&P MIB index of the biggest Italian companies.

At the end of 2009, Goldman Sachs decided to sell down its stake, which was completed in March 2010.In February 2011, Prysmian successfully made a takeover bid of EUR 840 million for Dutch company Draka, with headquarters in Eindhoven, which at the time was fourth in the world in the cable and optical fibre sector.In December 2017, it bought the American company General Cable based in Kentucky. A transaction of almost three billion dollars, consisting of equity and financial debt. This merged the leading cable-making company in the world in terms of revenue and the fourth , creating a group with a revenue of EUR 10 billion, EBIDTA of EUR 840 million and over 28,000 employees.

Acquisition of General Cable

The General Cable group was valued at 3 billion dollars with a price premium of approximately 81% to General Cable's share value on the last day of trading.The acquisition was unanimously approved by the two Boards of Directors and would create a company present in 50 countries with 31,000 employees, which could generate revenue of 11 billion dollars a year, based on estimates from the 2017 financial statements. The integration was expected to cost 220 million dollars. The price per share paid to General Cable was 30 dollars, versus a Prysmian dividend that was halved in 2011 after the acquisition of Draka, and stable at 43 cents per share. The General Cable group has one billion dollars of debt.Already the leading cable company in the world, with such "pro-forma" earnings, it would become twice as large as its second main competitor. Prysmian declared that it expects to increase its capital by more than 500 million in light of further acquisitions.The transaction was subject to approval by the antitrust authorities of the two countries.Its completion would create a market concentration in a strategic sector for public safety and economic development, which was already established by no more than ten competitors across Italy, the US and China. Other oligopolies exist in the fixed and mobile telephony sectors in various countries, partly due to the existence of natural monopolies.

Activity

The company is the global leader in the cable systems sector. Specifically, Prysmian produces and lays underground and submarine cables for the transmission and distribution of electricity, as well as specialised cables for use in various industrial contexts, and medium- and low-voltage cables for construction and infrastructure. For telecoms, the Group produces copper cables, optical cables and optical fibre cables for the transmission of data, video and sound.

On the customer's request, Prysmian also Designs and produces key systems and takes care of post-installation maintenance.

Every year, Prysmian invests more than EUR 100 million in research and development. This has allowed the Group to develop innovations like BendBrightXS 180?m, the narrowest bend-insensitive optical fibre, and FlexRibbon, which, with 6,912 fibres, is the optical cable with the highest number of fibres in the sector.

The company also developed the P-Laser technology for cabling systems, which combines greater transmission capacity and eco-sustainability, using 100% recyclable materials and cutting carbon emissions by 40%.

By 2022, Prysmian has planned to invest around EUR 450 million to net-zero the Group's CO2 emissions and improve the sustainability of its supply chain. An ambitious commitment, aligned with the objectives of the Paris Agreement, which would be executed with support from the non-profit organisation Carbon Trust.

For 2021, Prysmian confirmed the launch of the new Leonardo da Vinci cable-laying vessel, which will be the longest in the world at 171 metres.

In Italy, Prysmian is active in Merlino, Giovinazzo, Pignataro Maggiore, Quattordio, Livorno, Pozzuoli and Battipaglia.

Since the acquisition of General Cable, it is present in more than 50 countries with 104 facilities and over 28,000 employees.

Mission
We provide our customers with superior cable solutions based on state-of-the-art technology and consistent excellence in execution, ultimately delivering sustainable growth and profit.
Vision
Energy and information help communities develop. That’s why it’s so important that they’re always available, and that they’re supplied: effectively. Efficiently. Sustainably.
Key Team

Mr. Stefano Brandinali (Chief Digital Officer & Chief Information Officer)

Mr. Lorenzo Caruso (Chief Communications & Public Affairs Officer)

Ms. Maria Cristina Bifulco (Chief Sustainability Officer & Group Investor Relations VP)

Mr. Fabrizio Rutschmann (Chief HR Officer)

Mr. Alessandro Nespoli (Chief Audit & Compliance Officer)

Mr. Stefano Bulletti (Head of Operations and Head of Manufacturing & Logistics Departments)

Mr. Andrea Pirondini (CEO of North America & Exec. Director)

Recognition and Awards
Prysmian Group has been recognised for its excellence in sustainability, corporate citizenship and business innovation. The company has been included in the Dow Jones Sustainability Index and has won a number of awards, including the Excellence in Supply Chain Management Award and the Leadership in Sustainability Award
References
Prysmian Group
Leadership team

Mr. Valerio Battista (MD, CEO & Exec. Director)

Mr. Pier Francesco Facchini (CFO & Exec. Director)

Mr. Massimo Battaini (Group COO & Exec. Director)

Products/ Services
Telecommunications
Number of Employees
20,000 - 50,000
Headquarters
Milan, Lombardia, Italy
Established
1905
Net Income
500M - 1B
Revenue
Above - 1B
Traded as
PRY.MI
Social Media