nVent, a global leader in electrical connection and protection solutions, announced that it has reached a definitive agreement to sell its Thermal Management business, which includes the renowned RAYCHEM and TRACER brands, to funds managed by Brookfield Asset Management. The sale is valued at $1.7 billion in cash, subject to customary closing adjustments. Thermal Management, which reported sales of $595 million in 2023 and employs around 1,700 people worldwide, specializes in critical electrical thermal solutions. This sale will allow Thermal Management to strengthen its market positions and enhance its offerings, particularly in the context of the energy transition.
“Thermal Management excels in electric heat management solutions, backed by a skilled and innovative team,” said Beth Wozniak, nVent’s Chair and CEO. “This sale aligns with our strategy to focus on high-growth areas in electrical connection and protection, in line with key trends such as electrification, sustainability, and digitalization.”
nVent anticipates net after-tax proceeds of approximately $1.4 billion from the transaction. The company plans to use these funds for acquisitions and share repurchases.
The transaction is expected to close by early 2025, pending regulatory approvals and other customary conditions.
Goldman Sachs & Co. LLC is serving as the financial advisor, and Foley & Lardner LLP is providing legal counsel to nVent for this transaction.
nVent will discuss the transaction during its second-quarter earnings conference call on Tuesday, August 6, at 9:00 a.m. EDT. The call will be accessible via webcast at investors.nvent.com or by dialing 1-833-630-1071 or 1-412-317-1832. A replay will be available until August 20, 2024, by dialing 1-877-344-7529 or 1-412-317-0088, using access code 1713151.
