nVent Electric to acquire ECM Investors for $1.1B

nVent Electric announced that it has entered into a definitive agreement to acquire ECM Investors, the parent of ECM Industries, for a purchase price of $1.1B, subject to customary adjustments. ECM Industries is a 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. 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.