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NEW YORK - Avail Infrastructure Solutions, a company within the portfolio of Fernweh Group, has agreed to sell its Electrical Products Group (EPG) to nVent Electric plc (NYSE: NVT), a transaction valued at $975 million, subject to standard adjustments. The acquisition is a strategic move that aims to reinforce EPG’s status as a premier provider of electrical products. nVent, with a market capitalization of $8.7 billion and annual revenue of $3 billion, has demonstrated strong revenue growth of 12.6% over the last twelve months.
Jeremy Hoffman, President of EPG, expressed confidence that the integration with nVent will bolster the brand and generate substantial value for customers, employees, and stakeholders. The deal is expected to leverage EPG’s expertise in delivering top-tier electrical products and solutions, particularly with the anticipated growth in the datacenter and utilities sectors. According to InvestingPro data, nVent maintains a healthy financial position with a current ratio of 1.73 and operates with a moderate debt level. Get access to 10+ additional exclusive ProTips and comprehensive financial analysis with InvestingPro.
Siddarth Madhav, President of Fernweh Group, highlighted the transformation of EPG since its acquisition in 2022, attributing its success to the collaborative efforts between Fernweh and AZZ, as well as Avail’s commitment to growth, innovation, and operational efficiency. The team at Ayna.AI was also recognized for its significant contribution to the rapid margin and growth transformation of Avail. nVent has shown promising fundamentals with a gross profit margin of 40.2% and analysts expect continued profitability this year, according to InvestingPro research reports, which provide deep-dive analysis of 1,400+ top stocks.
Tom Ferguson, CEO of AZZ, and Nick Santhanam, CEO of Fernweh Group, praised the skill and dedication of the EPG employees and wished them well as they join nVent. The transaction, which has already received HSR approval, is anticipated to close in the first half of 2025, pending customary closing conditions.
Avail and Fernweh are set to work closely with nVent to facilitate a smooth transition for the EPG’s customer base and its approximately 1,100 employees. Greenhill, a Mizuho affiliate, served as the exclusive financial advisor for Avail, while Cleary Gottlieb Steen & Hamilton LLP provided legal counsel.
EPG, as a division of Avail, is recognized for its specialized products and solutions that cater to industrial and electrical applications, ensuring safe and reliable power transmission to critical infrastructure across various global markets. EPG’s portfolio includes custom switchgear, electrical enclosures, and medium and high-voltage bus ducts, operated through its entities such as CGIT Systems LLC and The Calvert Company LLC.
This news is based on a press release statement.
In other recent news, nVent Electric plc announced its agreement to acquire Avail Infrastructure Solutions’ enclosures, switchgear, and bus systems businesses for $975 million. This acquisition is expected to enhance nVent’s position in infrastructure sectors like power utilities and data centers. The transaction is anticipated to be accretive to nVent’s adjusted earnings per share in the first year after completion, which is projected for the first half of 2025. Additionally, nVent plans to integrate Avail’s Electrical Products Group into its Systems Protection business segment.
In terms of financial performance, nVent reported fourth-quarter earnings that aligned with analyst expectations, with adjusted earnings per share of $0.59. However, the company missed revenue estimates, reporting $752 million compared to the anticipated $771.18 million. For the full year 2024, nVent’s sales reached $3.0 billion, marking a 13% increase from the previous year. The company also provided guidance for 2025, forecasting adjusted earnings per share between $2.98 and $3.08, slightly above the midpoint of analyst estimates. nVent highlighted strong cash flow performance, with $501 million in cash flow from operations for the year.
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