nVent – nVent to Acquire ECM Industries, LLC
- Complements nVent’s electrical power connection and grounding solutions portfolio
- Extends nVent’s cable management offering with complementary products and adds tools and test instruments
- Further positions nVent with the electrification of everything in high-growth verticals, such as commercial solutions, power utilities, data solutions and renewables
- nVent to host conference call today at 9:30 a.m. ET
LONDON–(BUSINESS WIRE)– nVent Electric plc (NYSE: NVT) (“nVent”), 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
EMR Analysis
More information on nVent: See full profile on EMR Executive Services
More information on Beth Wozniak (Chief Executive Officer, nVent): See the full profile on EMR Executive Services
More information on Sara Zawoyski (Executive Vice President & Chief Financial Officer, nVent): See the full profile on EMR Executive Services
More information on ECM Industries, LLC: https://www.ecmindustries.com/ + ECM Industries LLC, headquartered in New Berlin, Wisconsin, is a global manufacturer and supplier of electrical products for residential construction, commercial construction, alternative energy, landscape and irrigation systems, utility, or automotive markets. With industry-leading brands, one of the largest assortments of electrical components, and a track record of innovative product development, ECM Industries partners with our customers to provide solutions and drive value.
Our legacy dates back over 125 years with the founding of ILSCO and includes a broad portfolio of leading brands which include Bergen, Briscon, Calterm, FTZ, Gardner Bender, IEI, ILSCO, King Innovation, Sperry Instruments, SSI and UTILCO. The ECM brands can be found on products throughout wholesalers, retailers, catalogs, and e-commerce distributors. Rooted by family, hardwork, and entrepreneurship each brand has its own story.
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.
Upon closing of this transaction, nVent plans to operate ECM Industries within its Electrical and Fastening Solutions business segment.
More information on Mike Masino (CEO, ECM Industries, LLC): https://www.ecmindustries.com/about/leadership + https://www.linkedin.com/in/michael-masino-57a24540/
More information on Foley & Lardner LLP: https://www.foley.com/en + Foley & Lardner LLP is a preeminent law firm that stands at the nexus of the energy, health care and life sciences, innovative technology, and manufacturing sectors. We look beyond the law to focus on the constantly evolving demands facing our clients and act as trusted business advisors to deliver creative, practical, and effective solutions. Our 1,100 lawyers across 25 offices worldwide partner on the full range of engagements from corporate counsel to IP work and litigation support, providing our clients with a one-team solution to all their needs. For nearly two centuries, Foley has maintained its commitment to the highest level of innovative legal services and to the stewardship of our people, firm, clients, and the communities we serve.
More information on Daljit S. Doogal (Chief Executive Officer, Foley & Lardner LLP): https://www.foley.com/en/about-us/leadership
More information on J.P. Morgan: https://www.jpmorgan.com/global + JPMorgan Chase & Co. is one of the world’s oldest, largest and best-known financial institutions.
The firm is built on the foundation of more than 1,200 predecessor institutions that have come together through the years to form today’s company.
We trace our roots to 1799 in New York City, and our many well-known heritage firms include J.P. Morgan & Co., The Chase Manhattan Bank, Bank One, Manufacturers Hanover Trust Co., Chemical Bank, The First National Bank of Chicago, National Bank of Detroit, The Bear Stearns Companies Inc., Robert Fleming Holdings, Cazenove Group and the business acquired in the Washington Mutual transaction. Each of these firms, in its time, was closely tied to innovations in finance and the growth of the U.S. and global economies.
$2.6T+ client assets under management
100+ global markets
250K+ employees
More information on Jamie Dimon (Chairman and Chief Executive Officer, JPMorgan Chase & Co.): https://www.jpmorganchase.com/about/our-leadership/jamie-dimon + https://www.linkedin.com/in/jamiedimon/
EMR Additional Notes:
- US GAAP (Generally Accepted Accounting Principles):
- Collection of commonly-followed accounting rules and standards for financial reporting.
- GAAP results are straightforward and understandable financial reports that investors and regulators can easily use to assess a business’s financial standing.
- IFRS (International Financial Reporting Standards):
- Set of accounting standards that govern how particular types of transactions and events should be reported in financial statements. They were developed and are maintained by the International Accounting Standards Board (IASB).
- GAAP are the generally accepted standards for financial reporting in the United States. IFRS are a set of internationally accepted accounting standards used by most of the world’s countries.
- The key differences between GAAP and IFRS (International Financial Reporting Standards) include: GAAP is a framework based on legal authority while IFRS is based on a principles-based approach. GAAP is more detailed and prescriptive while IFRS is more high-level and flexible. GAAP requires more disclosures while IFRS requires fewer disclosures.
