Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, June 14, 2024

Article Excerpt

NVENT ELECTRIC PLC, $78.55, symbol NVT on New York, makes stainless steel, aluminum and non-metallic covers and enclosures for electrical equipment, as well as electrical connections. Some of the company’s brands date back over 100 years and include Caddy, Erico, Hoffman, Raychem, Schroff and Tracer. It has over 11,000 employees worldwide and holds over 600 patents. The company was spun off from Pentair (symbol PNR on New York) on April 30, 2018. On June 6, 2024, nVent announced it would pay $695 million to acquire Wisconsin-based Trachte LLC from Palladium Equity Partners. Trachte makes custom-engineered control building solutions designed to protect critical infrastructure assets. These include steel substation control buildings and electrical equipment enclosures. Trachte’s 2024 revenue is expected to be $250 million. The transaction should add to nVent’s earnings within the first year after closing the deal. In the three months ended March 31, 2024, revenue increased 18.1%, to $874.6 million from $740.6 million a year earlier. Revenues were higher due to strong…