nVent Completes Acquisition of CIS Global Business

Rhea-AI Summary

nVent Electric plc (NYSE: NVT) has completed its acquisition of CIS Global for approximately $200 million, contingent on customary adjustments. CIS Global generated over $80 million in sales in 2020. nVent aims to leverage CIS Global's innovative solutions in intelligent rack power distribution and server slides to accelerate its growth strategy focused on electrification and heat management in data centers. The acquisition is expected to enhance nVent's product offerings and expand its global reach.

Positive

• Acquisition of CIS Global for $200 million enhances product offerings in rack power distribution.
• CIS Global's revenue exceeded $80 million in 2020, indicating strong market presence.
• Strategic alignment with nVent's growth plan centered on electrification and heat management.

Negative

• Integration challenges may arise from combining operations with CIS Global.
• Forward-looking statements include risks that could lead to actual results differing from expectations.

nVent Electric plc (NYSE: NVT) (“nVent”), a global leader in electrical connection and protection solutions, today announced it has completed the previously announced acquisition of CIS Global, a leading provider of intelligent rack power distribution and server slides products. CIS Global was acquired for a cash purchase price of approximately $200 million, subject to customary adjustments, and had more than $80 million in sales in 2020.

“The increasing demand for electrifying the world around us is sparking a dramatic increase in the need for protecting, powering and managing heat in large data centers and edge computing applications,” said nVent Enclosures President Joe Ruzynski. “With CIS Global’s innovative solutions in intelligent rack power distribution and proven capabilities in server slides, we will accelerate our growth plan centered around electrification, which includes providing leading technologies in heat and power management for data center and networking applications.”

“We are excited to join the nVent family. nVent has a strong vision and approach to business that closely aligns with our core values around customers, innovation and people,” said CIS Global Business President Shubhayu Chakraborty. “Our portfolio is complementary to nVent’s, which when combined, allows us to bring a greater breadth of solutions to our customers and expands our value proposition to a broader base through an extended global reach.”

About nVent

nVent is a leading global provider of electrical connection and protection solutions. We believe our inventive electrical solutions enable safer systems and ensure a more secure world. We design, manufacture, market, install and service high performance products and solutions that connect and protect some of the world's most sensitive equipment, buildings and critical processes. We offer a comprehensive range of enclosures, electrical connections and fastening and thermal management solutions across industry-leading brands that are recognized globally for quality, reliability and innovation. Our principal office is in London and our management office in the United States is in Minneapolis. Our robust portfolio of leading electrical product brands dates back more than 100 years and includes nVent CADDY, ERICO, HOFFMAN, RAYCHEM, SCHROFF and TRACER. Learn more at www.nvent.com.

nVent, CADDY, ERICO, HOFFMAN, RAYCHEM, SCHROFF and TRACER are trademarks owned or licensed by nVent Services GmbH or its affiliates.

All statements made about the anticipated benefits of the acquisition, are forward-looking statements subject to risks and uncertainties, such as the company’s ability to integrate the acquisition successfully and other risk factors contained in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2020, which could cause actual results to differ materially from those expressed by such forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210701005148/en/

FAQ

What was the acquisition price for CIS Global by nVent (NVT)?

nVent acquired CIS Global for approximately $200 million.

What is the expected impact of the CIS Global acquisition on nVent (NVT)?

The acquisition is expected to accelerate nVent's growth in electrification and expand its product offerings.

How much revenue did CIS Global generate in 2020?

CIS Global generated over $80 million in sales in 2020.

What are the primary products of CIS Global that nVent is acquiring?

CIS Global specializes in intelligent rack power distribution and server slides products.

What are the risks associated with nVent's acquisition of CIS Global?

The acquisition carries risks related to successful integration and achieving anticipated benefits.