nVent Electric to acquire Trachte for $695M

nVent Electric has entered into a definitive agreement to acquire the parent of Trachte for a purchase price of $695M, subject to customary adjustments. Trachte is a manufacturer of custom-engineered control building solutions designed to protect critical infrastructure assets. Trachte is headquartered in Madison, Wisconsin with more than 500 employees. Trachte estimates 2024 revenues to be approximately $250M. nVent expects the acquisition to be accretive to adjusted EPS in the first year following completion of the transaction. The effective enterprise value multiple is ~12x anticipated Trachte 2024 adjusted EBITDA. The transaction is expected to close in Q3, subject to customary conditions, including regulatory approval. nVent expects to fund the acquisition with a combination of available cash on hand and new debt. Upon closing of this transaction, nVent plans to operate Trachte within its Enclosures segment.