nVent Electric acquiring Wisconsin company for $1.1 billion

nVent Electric PLC, based in London but with management offices in St. Louis Park, has announced a $1.1 billion deal to acquire ECM Industries, which is in New Berlin, Wis.

nVent provides a wide variety of electrical connection and electrical protection products and solutions while ECM Industries provides electrical connectivity products, tools and test instruments as well as cable management products.

"This deal aligns with nVent's acquisition strategy focused on great products in high-growth verticals that we can scale, positioning us for continued long-term value creation," nVent Chief Executive Beth Wozniak said in a news release.

ECM has about 1,400 employees and annual revenue of $415 million.

In nVent's most recent year, it earned $399.8 million on revenue of $2.9 billion. Its earnings grew 46.5% and revenue 18.2% during the year.

The deal should close in the second quarter and start contributing to nVent's earnings this fiscal year.

"ECM's portfolio is one we've had our eye on for awhile," Wozniak said in a webcast announcing the deal. "We believe it is a great fit and will drive long-term value for nVent."

After the merger closes, ECM will integrate into the electrical and fastening solutions segment.

The combined portfolio of the two companies should take advantage of the electric vehicle and 5G buildout as well as the modernization of electrical grids.

In 2018, nVent became a public company when it spun out of Pentair with nearly 10,500 employees. This is its largest acquisition since becoming public, and it plans to pay for the deal with available cash and new debt. Bridge financing from J.P. Morgan is in place.

The company has had success with four previous acquisitions. Wozniak said in the webcast those four companies contributed $300 million in revenue to nVent last year and grew faster than nVent's overall growth.

Shares of nVent traded near $44.49 a share Monday, up 3.6%.