nVent Electric has entered into a definitive agreement to buy 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.
ECM Industries is known as a North American provider of electrical connectivity products with industry-leading brands, including ILSCO, Gardner Bender, and King Innovation. Based 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 that ended February 28, 2023.
nVent is expecting the acquisition to be accretive to adjusted earnings per share in 2023 following the completion of the deal. And on a GAAP-reported basis, nVent has estimated the acquisition to be accretive to earnings per share in 2024. The effective enterprise value multiple is approximately 10.6 times the trailing 12-month ECM Industries’ adjusted EBITDA.
The deal is expected to close in the second quarter of 2023, subject to customary conditions. And nVent expects to fund the acquisition with a combination of available cash on hand and new debt.
Upon closing of this deal, nVent plans to operate ECM Industries within its Electrical and Fastening Solutions business segment.
KEY QUOTES:
“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. 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.”
— nVent CEO Beth Wozniak
