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PwC Corporate Finance acted as lead financial advisor on the sale of Brugg Cables to Terna S.p.A.
About the Transaction: In January 2019, Brugg Group informed its employees and the public about the launch of a transformation program to ensure a successful future for the Brugg Cables division. Based on the global market situation, the Brugg Group decided in April 2019 to accelerate the transformation process with the aim to stop its cable production in Brugg by mid 2020 and reduce the number of jobs at its Swiss headquarter by 190. At the same time, Brugg Group announced that it would start the search for one or more strategic partners for Brugg Cables, while also assessing a sale or partial sale of the division supported by PwC.
On 20 December 2019, Brugg Group successfully signed an agreement to sell its cables division to the Italian transmission system operator Terna S.p.A.
As a result of the transaction, Brugg Cables will be able to continue the more than 120 year-long tradition of cable production at its headquarters in Brugg and secure more than 300 jobs in Switzerland for the years to come. Terna plans to leverage the extensive know-how and production capabilities of Brugg Cables in its traditional markets and to broaden its Terna Plus portfolio in the area of new energy solutions.
About the Target: Founded over 120 years ago, Brugg Kabel AG – active under the Brugg Cables brand name – is a leading Swiss cable manufacturer with a global market presence. The company’s more than 400 employees develop, manufacture, distribute, install and service cables, accessories and system solutions all over the world for energy distribution and industrial system applications. Brugg Cables operates as an independent division of the Brugg Group and is headquartered in Brugg, Switzerland. With own production facilities in Switzerland, China and Poland and sales and installation offices in Germany, India and the Middle East.
About the Buyer: Terna S.p.A. is a transmission system operator based in Rome, Italy. It operates through Terna Rete Italia, that manages the Italian transmission grid and Terna Plus which is in charge of new business opportunities in Italy and abroad. With more than 74,000 kilometres of power lines, Terna is the largest independent electricity transmission grid operator in Europe and the sixth in the world. Terna is listed on the Borsa Italiana.
About the Seller: Brugg Group is a diversified industrial company employing a total of 1,900 people worldwide, of which around 1,200 are employed in Switzerland. Operating across 5 different divisions (Cable Systems, Rope Technology, Pipe Systems, Process Control and Real Estate) with 24 production sites and more than 30 sales divisions, the Brugg Group is represented in all important industrial countries.
The PwC team
M&A Lead Advisory
Felix Peters