Nexans acquires Centelsa to advance Latin America’s electrification

Nexans is one of the world’s biggest producer of advanced cable technologies for power and data transmission with presence in five continents.

“This transaction completes an additional milestone of Nexans’ strategy to become a Pure Electrification Player focusing on the overall value chain originating in generation, and flowing through transmission, distribution, and usage of sustainable energy,” Nexans said in a statement.

With a total turnover  of more than $339 million in 2021, Centelsa’s three manufacturing plants in Cali, Colombia and their distribution center in Ecuador will complement Nexans’ presence in Latin America. Nexans already operates four industrial plants in Colombia, Peru, Chile and Brazil and employs 1,300 people.

Nexans’ regional headquarters for Latin America will be now located in Cali.

The transaction consists of the acquisition of 100% of the shares of the Spanish company Takami Investments, Alambres y Cables Técnicos, Alcatek, ESG Industriales, and Cobres de Colombia, as well as Ecuadorian company Cedetec, in addition to 50% of the shares of the nonferrous metal foundry company, Cobrecó.

The sellers were companies of Mexican group Xignux, and the transaction was subject to the prior regulatory clearance from the Superintendence of Industry and Commerce in Colombia.

Colombian law firm Gómez-Pinzón acted as advisor to Nexans on the transaction, with a team that comprised partners Juan David Quintero and Lina Uribe García (M&A), senior associate Juan Pablo Caicedo (M&A) and M&A associates Andrea Stephanou and Jimena Marín, as well as antitrust partner Mauricio Jaramillo Campuzano and antitrust senior associate Biviana Helo and antitrust associate Paula de la Calle.

“Nexans and Centelsa share a culture that emphasizes premium customer service and experience. Their collective histories as pioneers in sustainable technologies combined with their experience in electrification will benefit customers with enhanced solutions,” Nexans said.

“The group will also be able to build for its customers and partners a unique premium brand in the distribution and usage markets, while accelerating the development of a renewable energy offering across the region. Nexans will foster its Amplify program for innovation with the creation of a Design Lab in Cali, Colombia. This will include a fully dedicated team to enhance innovation based on Latin American customer experience and needs,” the company added.