Reka Industrial to sell cable business to Nexans for EUR 53m

Finnish cable and rubber manufacturer Reka Industrial Oyj (HEL:REKA) announced today it is selling its cable business to French sector player Nexans SA (EPA:NEX), which is a major supplier to the renewable energy industry.

Nexans has agreed to pay EUR 53 million (USD 52.8m) in cash, including the assumption of EUR 6.5 million in net debt, for the acquisition of Reka Cables Ltd. The transaction is subject to shareholder and regulatory clearance and is seen to close in the first half of next year at which point Reka Industrial will no longer be engaged in cable production.

Reka Cables, acquired by Reka Industrial in 2007, is a supplier of cable solutions for renewable energy production, network construction, industry as well residential and office construction. It operates factories in Keuruu, Riihimaki and Hyvinkaa. The Riihimaki facility is the one manufacturing wind power cables under the brand name DryRex Nordic Wind. Just a few weeks ago, the business secured a EUR-6-million contract to supply cables to an unnamed Nordic wind farm construction company.

According to its current owner, Reka Cables will be able to “invest even better in renewable energy solutions” as a part of the Paris-based group. Nexans does not currently have a production footprint in Finland.

A year ago, Reka Cables became one of the first carbon-neutral cablemakers on scope 1 and scope 2.

The targeted firm generated a turnover of EUR 134 million in 2021. This year, it is expected to surpass EUR 160 million.

(USD 1 = EUR 0.996)

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