(Bloomberg) -- Prysmian SpA agreed to buy Encore Wire Corp. for around €3.9 billion ($4.15 billion) including debt, the first major deal under its new CEO. 

The Italian cables maker is seeking to enhance its US presence and enter the country’s residential construction sector. Encore Wire produces copper and aliminum wires and cables for residential, commercial and industrial buildings.

Prysmian will pay $290 per share in cash to acquire the Texas-based company, according to a statement Monday. 

It’s the “largest deal” ever done by the company, designated Chief Executive Officer Massimo Battaini said in a conference call, adding that the main element for the acquisition is the portfolio complementarity of Encore Wire. As a result, North America will become “the most contributive region in terms of Ebitda,” he said. 

Prysmian shares rose as much as 6.5% in Milan trading to a record high. According to Bloomberg calculations, the bid represents a premium of about 11% compared to Encore Wire Friday’s market close.

The purchase, which is expected to close in the second part of this year and is subjected to the approval of Encore Wire investors, is set to boost Prysmian’s earnings per share by about 30%, including synergies. The Italian company also expects adjusted Ebitda will reach €2 billion before 2027, according to its CEO.

A combined group would have posted net sales of over €17.7 billion ($18.9 billion) and adjusted Ebitda of about €2.1 billion, based on the aggregated results of the twelve months ended December. 

There won’t be any change to Prysmian’s dividend in light of the deal, Chief Financial Officer Pier Francesco Facchini said in the same call. The acquisition will be financed with Prysmian’s own cash for €1 billion as well as new committed facilities totaling to €2.9 billion, CFO said.

“The deal allows Prysmian to further expand its presence in the US, adding a highly profitable company at reasonable multiples with a good potential in terms of cost synergies,” Mediobanca analyst Alessandro Tortora wrote in a note to clients. 

This is the first deal under the new leadership of Prysmian’s CEO Battaini. The cable maker, carved out of Pirelli in 2005, has grown both organically and externally, but acquisitions have had a pivotal role in company history. 

Read more: Prysmian Next CEO Says He’ll Focus on Selective M&A, Payouts

“There wouldn’t be a Prysmian without M&A, we were born through an acquisition,” Battaini has told Bloomberg in February. 

Since its formation, through a unit sale by Pirelli to private equity funds owned by Goldman Sachs Group Inc., Prysmian has expanded via major acquisitions. The firm bought Dutch cable maker Draka Holding NV, in 2010, and seven years later, it purchased US rival General Cable Corp.

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