2023-04-03 06:41:47 ET
- nVent Electric ( NYSE: NVT ) entered into a definitive agreement to acquire ECM Investors, parent of ECM Industries, for purchase price of $1.1B; to be operated within its Electrical and Fastening Solutions business segment.
- The company expects to fund the acquisition with a combination of available cash on hand and new debt.
- nVent expects the acquisition to be accretive to adj. EPS in 2023 post transaction completion; on GAAP basis, it estimates the acquisition to be accretive to EPS in 2024.
- The effective enterprise value multiple is ~10.6 times trailing twelve month ECM Industries’ adj. EBITDA.
- ECM Industries is a provider of high-value electrical connectors, tools and test instruments, and cable management.
- "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," CEO Beth Wozniak commented.
- Headquartered in New Berlin, Wisconsin, ECM Industries had revenues of $415M and adj. EBITDA of $104M in the twelve months ended Feb. 28, 2023.
- Transaction is expected to close in Q2 of 2023.
For further details see:
nVent to acquire ECM Industries for $1.1B, accretive in 2023