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Avail Infrastructure Solutions Announces Sale of Electrical Products Group (“EPG”)

1. nVent acquires EPG for $975 million, enhancing its product offering. 2. Transaction aims to solidify EPG's position in electrical products market. 3. Strategic combination expected to benefit datacenter and utilities growth. 4. 1,100 EPG employees will transition to nVent post-acquisition. 5. HSR approval obtained; closing expected in H1 2025.

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FAQ

Why Bullish?

nVent's strategic acquisition of EPG could enhance revenue and market position, similar to past successful acquisitions in the sector, such as Siemens' acquisition of Cumulocity in 2017, which led to market share growth.

How important is it?

The acquisition consolidates nVent's position as a key player in electrical solutions, likely influencing investor sentiment and stock performance significantly.

Why Long Term?

While immediate financial effects may be minimal, long-term benefits from increased capabilities and market positioning are expected.

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AZZSWKHGESIEN
SUWANEE, Ga., March 10, 2025 (GLOBE NEWSWIRE) -- Avail Infrastructure Solutions (“Avail”), a Fernweh Group (“Fernweh”) portfolio Company, announced today it has entered into a definitive agreement to sell its Electrical Products Group (“EPG”) business unit to nVent Electric plc (NYSE: NVT) (“nVent”), for an Enterprise Value of $975 million, subject to customary adjustments. “This is a crucial step in solidifying EPG's position as a leading provider of electrical products,” said Jeremy Hoffman, President of EPG. “The strategic combination with nVent will enhance EPG’s brand and create significant value for customers, employees and stakeholders. This transaction positions EPG to deliver best-in-class electrical products and solutions while benefiting from growth in the datacenter and utilities markets.” Siddarth Madhav, President of Fernweh Group commented, “This marks the completion of EPG’s transformation since its acquisition in 2022 as part of Avail. The transformation is a testament to the partnership between Fernweh and AZZ, and the Avail team’s focus on growth, innovation and operational efficiency. EPG is well-positioned for success with nVent. We thank Bill Johnson and team for their leadership at Avail.” “The success of Avail – a joint venture between Fernweh and AZZ – owes much to the skill and dedication of EPG employees. We extend our best wishes to Jeremy and the entire team as they embark on this next chapter with nVent. We also thank the team at Ayna.AI for its instrumental role in supporting the rapid margin and growth transformation of the entire Avail business,” said Tom Ferguson, Chief Executive Officer of AZZ and Nick Santhanam, Chief Executive Officer of Fernweh Group. The transaction is expected to close in calendar H1 2025, with HSR approval already obtained, subject to customary closing conditions. Avail and Fernweh will work closely with nVent to help ensure a smooth transition for customers and the Electrical Products Group’s approximately 1,100 employees. Avail engaged Greenhill, a Mizuho affiliate, as its sole financial adviser and Cleary Gottlieb Steen & Hamilton LLP as legal counsel for the transaction. About EPG Avail’s EPG business unit is a leading provider of specialized products and solutions designed to support industrial and electrical applications. EPG is dedicated to delivering safe and reliable transmission of power from generation sources to end customers serving critical infrastructure in a variety of markets worldwide. EPG operates a portfolio of custom switchgear, electrical enclosures and medium and high-voltage bus ducts through its various entities, including CGIT Systems LLC, The Calvert Company LLC, Central Electric Mfg. Company LLC and Atkinson Industries LLC, among others. About Fernweh Group LLC Fernweh is an investment firm launched by leaders from global institutions who have decades of experience working with companies in the industrial and industrial technology sectors on strategy, M&A, and operational transformation. Fernweh believes that companies in the mid- and small-cap industrial and industrial technology sectors are the engine of the economy. By tailoring cutting-edge management capability, operational and strategic transformation support, and capital for each company's unique context, history, and needs, Fernweh aims to be a builder of businesses and create value for all stakeholders. About AZZ Inc. AZZ Inc. is the leading independent provider of hot-dip galvanizing and coil coating solutions to a broad range of end-markets. Collectively, the business segments provide sustainable, unmatched metal coating solutions that enhance the longevity and appearance of buildings, products and infrastructure that are essential to everyday life.

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