AZZ says Electrical Products Group of AVAIL to be sold to nVent Electric

AZZ Inc. (AZZ) announced that Avail Infrastructure Solutions has entered into a definitive agreement to sell the electrical enclosures, switchgear, and bus systems businesses of AVAIL to nVent Electric (NVT) for a purchase price of $975M, subject to customary adjustments. The effective enterprise value multiple is approximately 12.5 times the anticipated Electrical Products Group trailing twelve-month EBITDA. AZZ has a non-controlling 40% interest and Fernweh Group a 60% interest in AVAIL through a joint venture that was entered into in 2022. The transaction is expected to close in the first half of calendar year 2025, subject to customary closing conditions. Following the sale, AZZ will continue to own a 40% interest in AVAIL, which will consist of AVAIL’s Industrial Lighting and Welding Solutions Businesses, and these will represent approximately 30% of pre-transaction group revenue. Tom Ferguson, Chief Executive Officer of AZZ, commented, “The agreement to divest the Electrical Products Group within AVAIL to nVent represents the continued transition of AZZ into a focused industry leading provider of metal coating solutions. This significant value adding transaction reflects the strong partnership between AZZ and Fernweh, and the continuation of the original vision Fernweh’s CEO, Nick Santhanam and I shared three years ago. AZZ will use the cash generated from this transaction to further reduce debt, or fund potential M&A activity. We will treat the gain on sale as a one-time adjustment to Net Income and EPS and believe the reduction in joint venture equity income will be offset by interest savings. Therefore, we will not adjust AZZ’s fiscal year 2026 earnings guidance at this time, but debt reduction will be significantly higher than announced.”