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 trends and macro growth drivers.

• Enhances engineered wire and cable offerings for harsh environments and blue-chip customers, combining strengths of Shawflex and AmerCable.

• Creates a strategic North American manufacturing footprint, enabling participation in Buy American/Buy America opportunities and cross-border product offerings.

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

• Broadens product offering to include medium voltage solutions and expands access to U.S. and global electrification markets.

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 funded through a mix of cash and existing credit facility; pro forma net debt/EBITDA at 2.2x (1.4x excluding leases).

• Expected to be immediately accretive to earnings per share by over 40% on a trailing twelve-month basis, pre-synergies.

• AmerCable delivers EBITDA margins above 20% and strong free cash flow conversion (>70%).

• 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 expanded addressable market (8x increase in U.S. vs. Canada).

• Combined technical capabilities and sharing of expertise expected to drive innovative product development and margin improvement.

• Some supply chain and software savings possible, but focus is on revenue growth and cross-selling.