Prysmian completes purchase of Channell, assuming top spot as premier supplier of FTTH services
Prysmian Strengthens Position in North American Cable Sector with Acquisition of Channell Commercial Corporation
In a strategic move aimed at leading the industry as a solutions provider, Prysmian, a global cable solutions provider, has announced the acquisition of Channell Commercial Corporation for a base purchase price of $950 million. This deal is set to significantly strengthen Prysmian's position in the North American cable sector and accelerate its transition from a traditional cable manufacturer to a leading digital infrastructure solutions provider.
The acquisition positions Prysmian as a leading provider of complete end-to-end Fiber-to-the-Home (FTTH) solutions. Channell's broad customer base, which includes leading operators across the Telecommunications, Broadband, Utility, and Power sectors, will further expand Prysmian's reach in North America.
By combining Channell’s expertise in enclosures and connectors with Prysmian’s fiber optic capabilities, Prysmian now offers comprehensive, integrated FTTH and 5G infrastructure solutions tailored for North America. This enhances its competitiveness and product portfolio relevant to digital infrastructure demands.
The $950 million+ deal positions Prysmian to capture a share of the $2 trillion global infrastructure market. Leveraging Channell’s U.S.-based manufacturing and R&D complements Prysmian’s focus on supply chain resilience and decarbonization, crucial in today’s market.
Channell’s vertical integration and US manufacturing and commercial footprint will contribute to Prysmian’s overall position in the North American cable sector. The acquisition combines Prysmian's market-leading portfolio of optical cable products with Channell's innovative infrastructure components, creating a comprehensive FTTH solution for North American customers.
Channell's diverse product portfolio, which includes vaults, fiber optics, thermoplastic enclosures, and metal enclosures, complements Prysmian's current Digital Solutions business. Reported net sales of $320 million in 2024 underscore the synergy between the two companies.
Post-acquisition Q2 2025 results show increased digital solutions profitability with adjusted EBITDA rising to €63 million against €44 million year-over-year, indicating strong synergies and improved margins. The integration maintains solid cash flow and sustainability commitments.
The acquisition may lead to an additional potential payment of up to $200 million based on Channell's EBITDA performance in 2025. Channell will be fully consolidated into the Prysmian perimeter for financial reporting as of June 1, 2025.
Prysmian's FY25 guidance excludes the contribution of Channell, and a new guidance will be reviewed and disclosed with the 1H '25 results on July 31, 2025. In the Digital Solutions space, Prysmian is committed to supporting its customers by offering expertise and guidance on optimizing network architecture.
Innovation acceleration is another key impact of the acquisition. Enhanced R&D capacity, now including Channell’s focus, propels Prysmian’s product innovation objectives, aiming to increase the share of new products significantly by 2028. This enhances the company’s ability to meet evolving demands in FTTH and 5G technologies.
In summary, the acquisition drives Prysmian’s strategic shift toward comprehensive digital infrastructure solutions in North America, boosting its competitive edge in fiber optic networks essential for advanced FTTH and 5G deployments.
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