Electrification Of Everything? nVent Electric Spends $1.1B Further To Position It In High-Growth Verticals

nVent Electric plc NVT 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.
ECM Industries provides high-value electrical connectors, tools and test instruments, and cable management.
Headquartered in New Berlin, Wisconsin, with about 1,400 employees, ECM Industries had revenues of $415 million and adjusted EBITDA of $104 million in the twelve months ended Feb. 28, 2023.
nVent expects the acquisition to be accretive to adjusted earnings per share in 2023 following completion of the transaction.
The effective enterprise value multiple is approximately 10.6 times trailing twelve-month ECM Industries' adjusted EBITDA.
Upon closing this transaction, nVent plans to operate ECM Industries within its Electrical and Fastening Solutions business segment. The company expects the deal to close in the second quarter of 2023.
nVent expects to fund the deal with available cash on hand and new debt. It held $297.5 million in cash and equivalents as of Dec. 31, 2022.
Price Action: NVT shares are trading higher by 1.37% at $43.53 in premarket on the last check Monday.