Capital Latour secures acquisition of Lynxeeo, Industry Solutions division of Nexans, for €525 million
In a strategic move, French cable manufacturer Nexans has divested its electrical equipment company Lynxeeo to private equity firm Latour Capital for €525 million. This transaction forms part of Nexans' long-term vision to streamline its portfolio and prioritise sustainable electrification solutions that support decarbonization and grid modernization.
The sale of Lynxeeo aligns with Nexans' strategy to become a "pure electrification player," reinforcing its position as a leading player in the future of energy infrastructure. Christopher Guérin, CEO of Nexans, stated that the transaction will streamline operations and ensure efficient resource allocation.
By selling Lynxeeo, Nexans is able to focus on areas that align with its long-term strategic priorities, such as high-voltage direct current (HVDC) subsea cables and digital grid monitoring solutions. For instance, Nexans is actively engaged in projects like the Attica–Crete interconnector—the first full integration of Crete into Greece's national grid using HVDC technology—and has formed strategic partnerships to digitize power networks.
The acquisition by Latour Capital, a France-based private equity firm with €4bn in assets under management, provides Nexans with financial flexibility and strategic clarity to accelerate investments in these cutting-edge areas. Half of Latour Capital's partners are former operational executives, indicating a hands-on approach to managing the acquired businesses.
Under Latour Capital's guidance, Lynxeeo's future is expected to shine brightly. The trend of private equity acquisitions of non-core industrial assets from large corporations, like Nexans, is on the rise, as these firms seek to refine their strategic focus and unlock value. This may lead to increased competition and innovation in various industries, as well as changes in the structure and ownership of these sectors.
Nexans, which reported €7.1bn in sales in 2024 and operates in 41 countries with approximately 28,500 employees, will continue to focus on accelerating the electrification of the world, in line with its purpose of "Electrifying the future." The acquisition of Lynxeeo by Latour Capital is an example of this trend, underscoring the growing role of private equity firms in the corporate world.
As Nexans embarks on this new chapter, it remains committed to its mission of advancing electrification technologies that support the energy transition and sustainability goals. The ongoing evolution of the corporate landscape, with transactions like this one, is a testament to the dynamic nature of the global economy and the strategic decisions that shape it.
- The transaction between Nexans and Latour Capital, a France-based private equity firm, will enable Nexans to allocate resources efficiently and accelerate investments in high-voltage direct current (HVDC) subsea cables and digital grid monitoring solutions.
- With Latour Capital's acquisition, Lynxeeo, a former subsidiary of Nexans, is anticipated to prosper, as half of Latour Capital's partners are former operational executives, demonstrating a hands-on approach to managing businesses.
- This strategic divestment aligns with Nexans' goal of becoming a "pure electrification player," allowing the company to focus on projects like the Attica–Crete interconnector and strategic partnerships to digitize power networks.
- Private equity acquisitions of non-core industrial assets, such as Lynxeeo, from large corporations like Nexans, is an emerging trend that could lead to increased competition, innovation, changes in structure, and ownership in various industries.
