nVent Completes Sale of Thermal Management Business
nVent Electric (NYSE: NVT) has completed the sale of its Thermal Management business to Brookfield Asset Management funds for $1.7 billion, with expected net after-tax proceeds of approximately $1.4 billion. The company plans to use the proceeds for acquisitions and share repurchases.
The transaction represents a strategic move to transform nVent's portfolio into a more focused electrical connection and protection leader with higher growth potential. The Thermal Management business results have been reclassified as discontinued operations starting in Q3 2024 for both current and historical periods.
Goldman Sachs & Co. acted as financial advisor, while Foley & Lardner LLP provided legal counsel to nVent for the transaction.
nVent Electric (NYSE: NVT) ha completato la vendita della sua divisione di Gestione Termica ai fondi di Brookfield Asset Management per 1,7 miliardi di dollari, con proventi netti dopo le tasse attesi di circa 1,4 miliardi di dollari. L'azienda prevede di utilizzare i proventi per acquisizioni e riacquisto di azioni.
La transazione rappresenta una mossa strategica per trasformare il portafoglio di nVent in un leader più focalizzato nella connessione e protezione elettrica, con un potenziale di crescita maggiore. I risultati della divisione di Gestione Termica sono stati riclassificati come operazioni discontinue a partire dal terzo trimestre del 2024 per i periodi attuali e storici.
Goldman Sachs & Co. ha agito come consulente finanziario, mentre Foley & Lardner LLP ha fornito assistenza legale a nVent per la transazione.
nVent Electric (NYSE: NVT) ha completado la venta de su negocio de Gestión Térmica a los fondos de Brookfield Asset Management por 1,7 mil millones de dólares, con un ingreso neto esperado después de impuestos de aproximadamente 1,4 mil millones de dólares. La empresa planea utilizar los ingresos para adquisiciones y recompras de acciones.
La transacción representa un movimiento estratégico para transformar el portafolio de nVent en un líder más enfocado en conexiones y protección eléctrica con mayor potencial de crecimiento. Los resultados del negocio de Gestión Térmica se han reclasificado como operaciones discontinuadas a partir del tercer trimestre de 2024 para los períodos actuales e históricos.
Goldman Sachs & Co. actuó como asesor financiero, mientras que Foley & Lardner LLP proporcionó asesoría legal a nVent para la transacción.
nVent Electric (NYSE: NVT)은 열 관리 사업을 Brookfield Asset Management 기금에 17억 달러에 판매하는 것을 완료하였으며, 세후 순수익은 약 14억 달러로 예상됩니다. 회사는 이 수익을 인수 및 자사주 매입에 사용할 계획입니다.
이번 거래는 nVent의 포트폴리오를 더 집중된 전기 연결 및 보호의 선두주자로 전환하기 위한 전략적 조치를 나타내며, 더 높은 성장 가능성을 가지고 있습니다. 열 관리 사업의 결과는 2024년 3분기부터 현재 및 과거 기간 모두에서 중단된 사업으로 재분류되었습니다.
Goldman Sachs & Co.는 재정 자문 역할을 했고, Foley & Lardner LLP는 거래에 대해 nVent에 법률 자문을 제공했습니다.
nVent Electric (NYSE: NVT) a terminé la vente de son activité de Gestion Thermique aux fonds de Brookfield Asset Management pour 1,7 milliard de dollars, avec des produits nets après impôts prévus d'environ 1,4 milliard de dollars. L'entreprise prévoit d'utiliser ces produits pour des acquisitions et des rachats d'actions.
La transaction représente un mouvement stratégique pour transformer le portefeuille de nVent en un leader plus axé sur les connexions et la protection électrique, avec un potentiel de croissance plus important. Les résultats de l'activité de gestion thermique ont été reclassés en tant qu'opérations abandonnées à partir du troisième trimestre 2024 pour les périodes actuelles et historiques.
Goldman Sachs & Co. a agi en tant que conseiller financier, tandis que Foley & Lardner LLP a fourni des conseils juridiques à nVent pour la transaction.
nVent Electric (NYSE: NVT) hat den Verkauf seines Thermal Management-Geschäfts an die Brookfield Asset Management-Fonds für 1,7 Milliarden USD abgeschlossen, mit erwarteten Nettoerlösen nach Steuern von etwa 1,4 Milliarden USD. Das Unternehmen plant, die Erlöse für Akquisitionen und Aktienrückkäufe zu verwenden.
Die Transaktion stellt einen strategischen Schritt dar, um das Portfolio von nVent in einen stärker fokussierten Marktführer für elektrische Verbindungen und Schutz mit höherem Wachstumspotenzial zu transformieren. Die Ergebnisse des Thermal Management-Geschäfts wurden ab dem 3. Quartal 2024 für aktuelle und historische Perioden als aufgegebene Betriebe umklassifiziert.
Goldman Sachs & Co. agierte als Finanzberater, während die Foley & Lardner LLP nVent rechtlichen Rat für die Transaktion erteilte.
- Sale of Thermal Management business for $1.7 billion, with $1.4 billion in net after-tax proceeds
- Strategic transformation towards higher growth business focus
- Proceeds to be used for acquisitions and share repurchases
- Divestment of a major business segment affecting revenue stream
Insights
The completion of the
The dual-purpose allocation of proceeds between acquisitions and share repurchases demonstrates a balanced approach to capital deployment. The acquisition strategy suggests nVent is positioning itself to expand its electrical connection and protection portfolio, potentially targeting businesses in high-growth segments such as data centers, industrial automation and renewable energy infrastructure. Meanwhile, the share repurchase component signals management's confidence in the company's intrinsic value and commitment to returning capital to shareholders.
The reclassification of Thermal Management as discontinued operations from Q3 2024 will result in cleaner financial statements, making it easier for investors to evaluate nVent's core business performance. This improved financial clarity, combined with a more focused business model, should lead to better analyst coverage and potentially higher valuation multiples.
This transaction exemplifies a well-executed corporate carve-out, with Brookfield Asset Management's proven track record in industrial sector investments making them an ideal buyer. The timing of the deal's completion is particularly strategic, as it allows nVent to reposition itself in a market increasingly focused on electrification and digital infrastructure.
The choice of Goldman Sachs as financial advisor suggests a competitive sale process that likely maximized value for nVent shareholders. The
From a post-merger integration perspective, the clean break through discontinued operations accounting treatment from Q3 2024 facilitates a smooth transition for both parties. For Brookfield, the Thermal Management business represents an attractive platform investment in the industrial temperature control sector, with potential for operational improvements and add-on acquisitions.
“Today marks a significant step in transforming our portfolio with the sale of the Thermal Management business and becoming a higher growth and more focused electrical connection and protection leader,” said nVent Chair and CEO Beth Wozniak. “I would like to thank the Thermal Management employees for their many contributions and look forward to watching the business continue to grow and perform.”
nVent expects net after-tax proceeds from the transaction of approximately
The results of the Thermal Management business were reclassified and reported as discontinued operations beginning in third quarter 2024 for current and historical periods.
Goldman Sachs & Co. LLC served as financial advisor and Foley & Lardner LLP provided legal counsel to nVent in connection with the transaction.
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 and electrical and fastening solutions across industry-leading brands that are recognized globally for quality, reliability and innovation. Our principal office is in
nVent CADDY, ERICO,
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains statements that we believe to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact are forward-looking statements. Without limitation, any statements preceded or followed by or that include the words “targets,” “plans,” “believes,” “expects,” “intends,” “will,” “likely,” “may,” “anticipates,” “estimates,” “projects,” “forecasts,” “should,” “would,” “could,” “positioned,” “strategy,” “future,” “are confident,” or words, phrases or terms of similar substance or the negative thereof, are forward-looking statements. All projections in this press release are also forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond our control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Among these factors are adverse effects on our business operations or financial results, including the overall global economic and business conditions impacting our business; the ability to achieve the benefits of our restructuring plans; the ability to successfully identify, finance, complete and integrate acquisitions, including the Trachte, ECM Industries and other recent acquisitions; competition and pricing pressures in the markets we serve, including the impacts of tariffs; volatility in currency exchange rates, interest rates and commodity prices; inability to generate savings from excellence in operations initiatives consisting of lean enterprise, supply management and cash flow practices; inability to mitigate material and other cost inflation; risks related to the availability of, and cost inflation in, supply chain inputs, including labor, raw materials, commodities, packaging and transportation; increased risks associated with operating foreign businesses, including risks associated with military conflicts, such as that between
View source version on businesswire.com: https://www.businesswire.com/news/home/20250130510031/en/
Investor Contact
Tony Riter
Vice President, Investor Relations
nVent
763.204.7750
Tony.Riter@nVent.com
Media Contact
Stacey Wempen
Director, External Communications
nVent
763.204.7857
Stacey.Wempen@nVent.com
Source: nVent
FAQ
How much did nVent (NVT) sell its Thermal Management business for?
What will nVent (NVT) do with the proceeds from the Thermal Management business sale?
When will the Thermal Management business be classified as discontinued operations for NVT?
Who were the advisors for nVent's (NVT) Thermal Management business sale?
