nVent Electric plc, a global leader in electrical connection and protection solutions, today announced that it has entered into a definitive agreement to acquire ECM Investors, LLC, the parent of ECM Industries, LLC, for a purchase price of $1.1 billion, subject to customary adjustments. ECM Industries is a leading provider of high-value electrical connectors, tools and test instruments, and cable management. nVent will conduct an investor teleconference at 9:30 a.m. ET today to provide more details about this acquisition.

“We are excited to acquire ECM Industries. This deal aligns with nVent’s acquisition strategy focused on great products in high-growth verticals that we can scale, positioning us for continued long-term value creation,” said nVent CEO Beth Wozniak. “ECM Industries has a highly complementary portfolio of electrical power connection and grounding solutions, including its ILSCO brand. Together with ECM, nVent can provide a broader offering to customers, including electrical contractors, and to distribution partners. With a long history of focusing on the customer and growth, industry-leading brands and a people oriented culture, we believe ECM will be a great fit with nVent.”

ECM Industries is a North American provider of electrical connectivity products with industry-leading brands, including ILSCO, Gardner Bender and King Innovation. Headquartered in New Berlin, Wisconsin with approximately 1,400 employees, ECM Industries had revenues of $415 million and adjusted EBITDA of $104 million in the twelve months ended February 28, 2023.

nVent expects the acquisition to be accretive to adjusted earnings per share in 2023 following completion of the transaction. On a GAAP reported basis, nVent estimates the acquisition to be accretive to earnings per share in 2024.

The effective enterprise value multiple is approximately 10.6 times trailing twelve month ECM Industries’ adjusted EBITDA.

The transaction is expected to close in the second quarter of 2023, subject to customary conditions, including regulatory approval. nVent expects to fund the acquisition with a combination of available cash on hand and new debt.

Reconciliations of GAAP to non-GAAP measures are in the attached financial tables.

Upon closing of this transaction, nVent plans to operate ECM Industries within its Electrical and Fastening Solutions business segment.

Foley & Lardner LLP is providing legal counsel to nVent in connection with the transaction. J.P. Morgan is providing nVent with committed bridge financing for the transaction.

INVESTOR CONFERENCE CALL

nVent will host an investor conference call to discuss the transaction at 9:30 a.m. ET today. A live audio webcast of the conference call and materials will be available through the “Investor Relations” section of the company’s website (https://investors.nvent.com). To participate, please dial 1-833-630-1071 or 1-412-317-1832 approximately ten minutes before the 9:30 a.m. ET start. A replay of the conference call will be made accessible once it becomes available and will remain accessible through April 17, 2023 by dialing 1-877-344-7529 or 1-412-317-0088, along with the access code 1930936.


Source:nvent.com

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