nVent Electric plc has entered into a definitive agreement to sell its thermal management business, which includes the Raychem and Tracer, to funds managed by Brookfield Asset Management for a cash purchase price of $1.7 billion, subject to customary closing adjustments.
With 2023 sales of $595 million and approximately 1,700 employees around the world, nVent’s Thermal Management business focuses on mission-critical electrical thermal solutions. According to the press release, the sale will enable Thermal Management to further build on its positions and differentiated solutions to drive growth across its verticals and expand with the energy transition.
"Thermal Management is a leader in electric heat management solutions with a strong, experienced team that is focused on delivering innovative solutions to customers," said nVent Chair and CEO Beth Wozniak in the press release. "Consistent with our strategy, the sale represents a significant step to nVent becoming a higher growth and more focused electrical connection and protection leader, well positioned with the megatrends of electrification, sustainability and digitalization."
nVent expects net after-tax proceeds from the transaction to be approximately $1.4 billion and intends to use the proceeds for acquisitions and share repurchases. The transaction is expected to close by early 2025, subject to customary conditions, including regulatory approvals.