nVent to acquire Wisconsin-based enclosures business

nVent Electric on Thursday announced a $695 million acquisition that will add to its growing business protecting critical electrical equipment and connections at a time when the company is prioritizing sustainability.

The company, headquartered in London with offices in St. Louis Park, said it plans to acquire Trachte LLC, a Madison, Wis.-based manufacturer of prefabricated steel control buildings that protect electrical equipment and connections associated with utility, renewable energy, data centers and industrial sites.

“Trachte will expand our enclosures portfolio in new applications and enhance our system protection capability. It further strengthens our solutions in high-growth verticals, including power utilities, data centers and renewables,” said Beth Wozniak, nVent’s chair and chief executive.

Trachte has 500 employees and is expected to add about $250 million of revenue to nVent this year. The deal is expected to be closed in the third quarter, nVent said, and the company expects the acquisition to make a positive impact on its adjusted earnings per share within one year.

Available cash and new debt will pay for the transaction, according to nVent’s plans.

The company operates in three business segments: enclosures, thermal management and electrical and fastening solutions. The enclosures segment is the largest, producing nearly half of its $3.3 billion in annual revenue in 2023. The company was ranked No. 22 by revenue on the Star Tribune’s most recent list of public companies in Minnesota.

The addition of Trachte will play well with nVent’s mission of building a more sustainable and electrified world. “With the macro trends of modernizing and upgrading electrical infrastructure as well as the expansion of data centers, Trachte provides us with a platform to accelerate our growth and provide broader solutions for customers,” Wozniak said.

Protecting electrical connections and equipment with effective enclosures is a sustainable solution in itself, acting as a shield against the elements and avoiding the need for expensive repair or replacement.

The addition of Trachte is nVent’s second acquisition of a Wisconsin-based company in the past 18 months. In May 2023, nVent closed on a $1.1 billion acquisition of ECM Industries, a New Berlin, Wis.-based manufacturer of high-value electrical connectors, tools and test instruments and cable management.

ECM Industries and its 1,400 employees became part of nVent’s electrical and fastening solutions segment and helped that segment grow annual revenue in 2023 by 34% to $1.1 billion.

Shares of nVent closed Thursday at $76.70, down more than 3%.