NVent Electric PLC will buy a Spanish electrical-enclosures firm for $130 million.
The purchase of Eldon, announced Monday, is the first acquisition for nVent since it spun off from Pentair PLC in April 2018.
With Madrid-based Eldon, the $2.2 billion nVent will gain an additional $90 million in annual revenue and an expanded presence in Europe, where nVent now has operations in Germany, Poland and England but not Spain. NVent is based in England but is primarily run from St. Louis Park.
The addition of Eldon, with global operations that include Madrid and factories in Romania and India, is considered highly complementary as it will expand nVent’s largest product line of electrical, machine and utility enclosures. Eldon makes steel industrial enclosures and cages that either hang on the wall or stand upright to protect utility and electrical equipment from water and human movement.
The transaction is expected to close before the end of 2019.
“Eldon is a great fit for nVent,” said nVent CEO Beth Wozniak in a statement. “The combination of Eldon and our enclosures business will strengthen our ability to quickly respond to customers around the world and provide advanced and flexible solutions.”
Eldon, she noted, has focused on driving its digital capabilities so it can serve customers quickly. Its technology and digital enhancements and speed “align perfectly with our strategy,” Wozniak said.
The acquisition was announced three days before nVent releases its second-quarter earnings. The company’s stock closed Monday nearly even at $24.85.
NVent — which was the former electrical division of Pentair, also based in England but mainly run out of Golden Valley — manufactures a host of products from electrical enclosures to heat-tracking and management systems and electrical solutions for buildings.
The company has 9,000 global employees and reported $2.2 billion in sales and $230.8 million in profits last year.