nVent to Acquire Trachte
nVent Electric (NYSE: NVT) announced a definitive agreement to acquire the parent of Trachte for $695 million, subject to adjustments. Trachte, a manufacturer of custom-engineered control building solutions, will enhance nVent’s enclosures portfolio and system protection capability. This acquisition is expected to bolster nVent’s market position in high-growth sectors such as power utilities, data centers, and renewables. Trachte forecasts 2024 revenues of approximately $250 million. The acquisition is expected to be accretive to nVent’s adjusted earnings per share in the first year post-transaction, with an effective enterprise value multiple of ~12x anticipated 2024 adjusted EBITDA. The deal is set to close in Q3 2024, pending regulatory approval.
- Acquisition cost: $695 million.
- Estimated 2024 revenues for Trachte: $250 million.
- Transaction expected to be accretive to adjusted EPS in first year.
- Strengthens nVent’s capabilities in high-growth sectors: power utilities, data centers, and renewables.
- Effective enterprise value multiple: ~12x anticipated 2024 adjusted EBITDA.
- Deal to close in Q3 2024, subject to customary conditions.
- Funding acquisition with combination of available cash and new debt.
- Dependent on regulatory approval.
Insights
The acquisition of Trachte, LLC by nVent Electric plc for
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nVent's acquisition of Trachte signals strategic expansion into high-growth areas such as power utilities, data centers and renewables. These sectors are expected to see significant investment due to trends like electrification and modernization of infrastructure. Trachte’s expertise in custom-engineered control building solutions aligns well with these macro trends, potentially providing nVent with a competitive edge. The synergies from this deal could enhance nVent’s market position and broaden its product offerings, making it more comprehensive for customers seeking robust infrastructure protection solutions.
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Acquiring Trachte allows nVent to integrate advanced, custom-engineered control building solutions into its existing portfolio, thereby enhancing its capabilities in system protection. This addition is particularly relevant in the context of rising demands for robust infrastructure due to increased electrification, modernization of electrical grids and the proliferation of data centers. Trachte’s technology could enable nVent to offer more advanced, reliable solutions, safeguarding critical infrastructure in high-growth verticals.
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- Leading manufacturer of custom-engineered control building solutions designed to protect critical infrastructure assets
- Expands nVent’s enclosures portfolio in new applications and enhances systems protection capability
- Strengthens nVent’s position with the electrification of everything in high-growth verticals including power utilities, data centers and renewables
- Expect transaction to be accretive to adjusted EPS in the first year after completing the transaction
nVent Chair and CEO Beth Wozniak said, “Trachte will expand our enclosures portfolio in new applications and enhance our system protection capability. It further strengthens our solutions in high-growth verticals, including power utilities, data centers and renewables. With the macro trends of modernizing and upgrading electrical infrastructure as well as the expansion of data centers, Trachte provides us with a platform to accelerate our growth and provide broader solutions for customers. We look forward to welcoming the Trachte team to nVent, and together helping to build a more sustainable and electrified world.”
Trachte has an established history of providing control building solutions, and is headquartered in
nVent expects the acquisition to be accretive to adjusted earnings per share in the first year following completion of the transaction. The effective enterprise value multiple is ~12x anticipated Trachte 2024 adjusted EBITDA. The transaction is expected to close in the third quarter of 2024, subject to customary conditions, including regulatory approval. nVent expects to fund the acquisition with a combination of available cash on hand and new debt.
Upon closing of this transaction, nVent plans to operate Trachte within its Enclosures segment.
Foley & Lardner LLP is providing legal counsel to nVent in connection with the transaction. Citigroup Global Markets Inc. is providing nVent with committed bridge financing for 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, 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
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 statements made about the anticipated acquisition, including the anticipated time for completing the acquisition, the expected financial results of the acquired business and the anticipated benefits of the acquisition, are 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 our ability to close and fund the acquisition on the expected terms and time schedule, including obtaining regulatory approvals and satisfying other closing conditions; our ability to integrate the acquisition successfully; our ability to retain customers and employees of the acquired business; adverse effects on our business operations or financial results, including due to 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; 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
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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
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