Core Viewpoint - Nexans has entered exclusive negotiations with Motherson for the sale of its wiring harness business, Autoelectric, for an enterprise value of €207 million, marking the final step in its transformation into a pure electrification player [1][2][3] Company Overview - Nexans is a global leader in sustainable electrification, focusing on advanced cable solutions and services that support the transition to a low-carbon future [9][11] - The company operates in 41 countries with a workforce of 28,500 and generated €7.1 billion in standard sales in 2024 [11] - Nexans is committed to achieving net-zero emissions by 2050 and is recognized as a climate action leader [11] Business Details - Autoelectric, based in Floss, Germany, specializes in designing and manufacturing wiring harness and vehicle wiring system solutions for the automotive industry, generating approximately €749 million in annual sales in 2024 with nearly 14,000 employees [2][3] - The divestment of Autoelectric completes Nexans' strategic shift away from non-electrification activities, aligning with its "Sparking Electrification" strategy [3] Transaction Insights - The acquisition by Motherson is seen as a strategic fit, allowing Autoelectric to grow under a new owner with strong ties to the automotive industry [3] - The transaction is subject to customary regulatory approvals and is expected to be completed by mid-2026 [3] Financial Implications - The proposed sale will classify Autoelectric as "Assets Held for Sale" in Nexans' 2025 consolidated financial statements, impacting the classification of the Industry and Solutions Businesses as discontinued operations [4][5] - The 2025 guidance has been adjusted to reflect the exclusion of discontinued operations, with the new adjusted EBITDA guidance ranging from €710 million to €760 million [6][7]