nVent to acquire Avail Infrastructure for $975 million

LONDON - nVent Electric plc (NYSE: NVT), known for its electrical connection and protection solutions, today announced its definitive agreement to purchase Avail Infrastructure Solutions’ enclosures, switchgear, and bus systems businesses for $975 million, subject to standard adjustments. This acquisition is anticipated to bolster nVent’s presence in key infrastructure sectors such as power utilities and data centers. According to InvestingPro data, nVent has demonstrated solid financial health with a current ratio of 1.73 and revenue growth of 12.6% over the last twelve months, suggesting strong operational performance despite recent stock price challenges.

The Electrical Products Group of Avail, a prominent North American infrastructure solutions provider, employs about 1,100 people and operates nine manufacturing sites in the United States. With an estimated revenue of $375 million for the 12 months ending February 28, 2025, and a substantial backlog, the group’s customer base includes power utilities, data centers, OEMs, and EPCs.

Beth Wozniak, nVent’s Chair and CEO, expressed enthusiasm for the acquisition, highlighting the expected increase in demand for control buildings, switchgear, and bus systems due to the modernization of electrical infrastructure and the expansion of data centers. Wozniak noted that the acquisition builds on nVent’s existing platform and expands its offerings and capabilities.

nVent anticipates that the acquisition will be accretive to its adjusted earnings per share in the first year post-transaction completion. The transaction, expected to close in the first half of 2025 subject to standard closing conditions, will be financed with available cash on hand. The effective enterprise value multiple is approximately 12.5 times the anticipated Electrical Products Group trailing twelve-month EBITDA. The company currently trades at an EV/EBITDA multiple of 16.6x, with InvestingPro analysis indicating the stock is trading near its Fair Value. For deeper insights into nVent’s valuation metrics and growth potential, investors can access the comprehensive Pro Research Report, which provides detailed analysis of 1,400+ top stocks.

Upon closing, nVent plans to predominantly integrate the Electrical Products Group within its Systems Protection (formerly Enclosures) business segment.

About nVent, the company is a global leader in electrical connection and protection solutions, with a portfolio of industry-recognized brands such as nVent CADDY, ERICO, HOFFMAN, ILSCO, SCHROFF, and TRACHTE. nVent’s principal office is in London, with a management office in Minneapolis, USA. The company’s history spans over a century, focusing on products and solutions that connect and protect sensitive equipment and infrastructure. InvestingPro data shows the company maintains a moderate debt level with a debt-to-equity ratio of 0.71, while delivering a strong return on invested capital of 8%. InvestingPro subscribers have access to over 10 additional key insights about nVent’s financial health and market position.

This news is based on a press release statement and has not been independently verified.

In other recent news, nVent Electric plc reported its fourth-quarter earnings, aligning with analyst expectations, while revenue fell short. The company recorded adjusted earnings per share of $0.59, matching the consensus estimate, but the quarterly revenue of $752 million missed the expected $771.18 million. Despite this, nVent’s revenue showed a 9% increase on a reported basis compared to the previous year, although it decreased by 1% organically. For the full year 2024, nVent’s sales reached $3.0 billion, marking a 13% increase from 2023, with a 2% organic growth. The company achieved adjusted earnings per share of $2.49 for the year, up 7% from the prior year’s $2.32. Looking forward, nVent provided guidance for the first quarter of 2025, anticipating adjusted earnings per share between $0.65 and $0.67, slightly below the analyst consensus of $0.68. For the full year 2025, the company forecasts adjusted earnings per share ranging from $2.98 to $3.08, with the midpoint slightly exceeding the analyst estimate. The company also highlighted its strong cash flow performance, with $501 million in cash flow from operations and $427 million in free cash flow from continuing operations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.