Mattr (MATR) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition of AmerCable expands presence in the U.S. wire and cable market, especially in medium voltage, supporting electrification and infrastructure trends.

• Enhances product portfolio and geographic reach, combining AmerCable's U.S. strengths with Shawflex's Canadian base and creating a strategic North American manufacturing footprint.

• Provides access to new end markets and cross-selling opportunities, multiplying the addressable market by eight times.

• Positions the company as a premier custom engineered cable manufacturer in North America, accelerating long-term growth ambitions.

• Supports long-term strategy to focus on high-growth, high-value infrastructure businesses and blue-chip customers.

Financial terms and conditions

• Purchase price is US$280 million (approx. C$390 million), representing 5.0x trailing twelve-month adjusted EBITDA as of June 30, 2024.

• Transaction is expected to be immediately accretive to earnings per share, with over 40% EPS accretion pre-synergies.

• Funded through a mix of balance sheet cash and existing credit facility; pro forma net debt/EBITDA at 2.2x (1.4x ex-leases), with a target below 2.0x within 12–18 months post-close.

• AmerCable delivers over C$75 million in trailing twelve-month adjusted EBITDA with margins above 20%.

• Transaction fees are expected to be C$8–9 million, mostly recorded in Q4 2024.

Synergies and expected cost savings

• Main value from commercial synergies, cross-selling, and sharing of technical expertise, with limited cost synergies anticipated.

• Enhanced procurement efficiency and platform to drive future organic growth and M&A.

• Combined product portfolios will offer comprehensive solutions unique in North America, supporting long-term growth and margin improvement.