Prysmian CEO Reaches €10 Billion Milestone in Final Term

Valerio Battista has been credited with transforming Prysmian SpA from a unit of tire maker Pirelli into a global leader in cables. Under his leadership, the company has seen its market value exceed €10 billion. This may be his final term at the helm, but he has certainly left his mark on the company.

The 66-year-old is not expected to seek another term as CEO when his current term expires next year, according to people familiar with the matter.

Battista, who has been Prysmian's CEO for nearly two decades, plans to remain one of the company's top shareholders, with a roughly 1.5% stake, according to people familiar with the matter.

A spokesman for the company declined to comment on Battista’s potential plans and investments. The company has a succession plan in place according to its 2022 report on remuneration and compensation.

Battista retired as general manager in 2021, as the company said in the report.

The shares fell by 2.5% in Milan trading following the initial Bloomberg report. This was the biggest decline in intraday terms since Jan. 5.

Prysmian, which was created in 2005 when private equity funds owned by Goldman Sachs Group Inc. purchased Pirelli, has grown both organically and through acquisitions. In 2010 it bought Dutch cable maker Draka Holding NV, and in 2017 it purchased US rival General Cable Corp.

Prysmian's stock has more than doubled since its 2007 initial public offering, outperforming the benchmark FTSE MIB index in Milan. The company's market value topped €10 billion earlier this month when its shares hit a record high of €37.6.

In November, the Milan-based company raised its guidance for adjusted earnings before interest, taxes, depreciation, and amortization to around €1.5 billion. The next milestone could be €2 billion in adjusted Ebitda over the medium term, the people said.

Prysmian increased its guidance for free cash flow for the year, now seen rising to as high as €500 million. The company wants to use the cash for internal growth in businesses driven by energy and digital transition, though major deals are seen as unlikely, the people said.

Prysmian has also said it plans to focus on less mature markets like medium-voltage in the US. The company believes that demand in this market is rising due to grid-hardening processes but capacity is lacking.

The company also says it sees opportunities for green projects under US President Joe Biden’s stimulus measures through interconnections of local solar and wind farm electricity production to larger grids. These interconnections would create a more efficient and sustainable energy system.