AZZ Inc. Sells Electrical Products Group to nVent Electric plc for $975 Million
FORT WORTH, Texas, March 10, 2025
AZZ Inc. (AZZ), a leading global provider of electrical equipment and services, announced today that Avail Infrastructure Solutions (AVAIL) has entered into a definitive agreement to sell the electrical enclosures, switchgear, and bus systems businesses (the “Electrical Products Group”) to nVent Electric plc (nVent). The transaction is valued at $975 million, subject to customary adjustments.
Background on the Deal
AVAIL is a subsidiary of AZZ, and the Electrical Products Group is a significant contributor to AZZ’s revenue. The sale of this business marks a strategic move for AZZ, as it focuses on growing its core markets in energy infrastructure and electrical components. nVent, a global electrical technology company, will integrate the Electrical Products Group into its existing business, expanding its offerings in the electrical enclosures and switchgear markets.
Financial Implications
The effective enterprise value multiple for the Electrical Products Group is approximately 12.5 times the anticipated trailing twelve-month EBITDA. This sale is expected to result in a significant cash infusion for AZZ, which it plans to use to reduce debt and invest in its core businesses.
Impact on AZZ Shareholders
The sale of the Electrical Products Group is likely to positively impact AZZ shareholders. The proceeds from the sale will help AZZ reduce its debt and improve its financial position. Additionally, the company’s focus on its core markets is expected to lead to increased revenue and profitability in the future.
Impact on the Electrical Industry
The sale of the Electrical Products Group to nVent is expected to have a significant impact on the electrical industry. nVent’s expanded offerings will make it a stronger player in the electrical enclosures and switchgear markets. This could lead to increased competition and innovation in the industry, benefiting consumers and businesses that rely on electrical infrastructure.
Conclusion
AZZ Inc.’s sale of the Electrical Products Group to nVent Electric plc for $975 million is a strategic move that will help AZZ focus on its core markets and improve its financial position. The sale is expected to have a positive impact on AZZ shareholders and the electrical industry as a whole, with increased competition and innovation in the electrical enclosures and switchgear markets.
- AZZ Inc. sells Electrical Products Group to nVent Electric plc for $975 million
- The sale is expected to result in a significant cash infusion for AZZ
- AZZ will use proceeds to reduce debt and invest in core businesses
- nVent’s expanded offerings will make it a stronger player in electrical enclosures and switchgear markets
- Increased competition and innovation in the electrical industry
