- Transaction creates a more focused nVent portfolio, a global
leader in electrical connection and protection solutions
- All-cash transaction valued at $1.7 billion, subject to
customary closing adjustments
- nVent will discuss the transaction during its second quarter
earnings conference call on Tuesday, August 6 at 9:00 a.m. EDT
nVent Electric plc (NYSE: NVT) (“nVent”), a global leader in
electrical connection and protection solutions, today announced
that it has entered into a definitive agreement to sell its Thermal
Management business (“Thermal Management”), which includes the
industry-leading RAYCHEM and TRACER brands, to funds managed by
Brookfield Asset Management for a cash purchase price of $1.7
billion, subject to customary closing adjustments.
With 2023 sales of $595 million and approximately 1,700
employees around the world, Thermal Management is a leader in
mission critical electrical thermal solutions. The sale will enable
Thermal Management to further build on its leading positions and
differentiated solutions to drive growth across its verticals and
expand with the energy transition.
“Thermal Management is a leader in electric heat management
solutions with a strong, experienced team that is focused on
delivering innovative solutions to customers,” said nVent Chair and
CEO Beth Wozniak. “Consistent with our strategy, the sale
represents a significant step to nVent becoming a higher growth and
more focused electrical connection and protection leader, well
positioned with the megatrends of electrification, sustainability
and digitalization.”
nVent expects net after-tax proceeds from the transaction to be
approximately $1.4 billion and intends to use the proceeds for
acquisitions and share repurchases.
The transaction is expected to close by early 2025, subject to
customary conditions, including regulatory approvals.
Goldman Sachs & Co. LLC is serving as financial advisor, and
Foley & Lardner LLP is providing legal counsel to nVent in
connection with the transaction.
The transaction will be discussed during nVent’s second quarter
earnings conference call on Tuesday, August 6 at 9:00 a.m. EDT. The
earnings call can be accessed via webcast at
http://investors.nvent.com or by dialing 1-833-630-1071 or
1-412-317-1832. Once available, a replay of the conference call
will be accessible through August 20, 2024, by dialing
1-877-344-7529 or 1-412-317-0088, along with the access code
1713151.
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, ILSCO, RAYCHEM and
SCHROFF.
nVent CADDY, ERICO, HOFFMAN, ILSCO, RAYCHEM and SCHROFF are
trademarks owned or licensed by nVent Services GmbH or its
affiliates.
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 about the Thermal Management
transaction, including the anticipated benefits of the sale and the
anticipated time for completing the sale, 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 due to the ability to complete the
pending sale of the Thermal Management business on anticipated
terms and timetable and the expected net proceeds from such sale
and use thereof; 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
ECM Industries, Trachte, 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 Russia and Ukraine, and related sanctions; the
ability to deliver backlog and win future project work; failure of
markets to accept new product introductions and enhancements; the
impact of changes in laws and regulations, including those that
limit U.S. tax benefits; the outcome of litigation and governmental
proceedings; and the ability to achieve our long-term strategic
operating goals. Additional information concerning these and other
factors is contained in our filings with the U.S. Securities and
Exchange Commission, including our Annual Report on Form 10-K and
our Quarterly Reports on Form 10-Q. All forward-looking statements
speak only as of the date of this press release. nVent assumes no
obligation, and disclaims any obligation, to update the information
contained in this press release.
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version on businesswire.com: https://www.businesswire.com/news/home/20240801379213/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
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