nVent Adds Trachte to Enclosures Group

Last month nVent announced that it entered a definitive agreement to acquire Trachte, manufacturer of custom-engineered control building solutions designed to protect critical infrastructure assets.

The deal closed on July 16th.

The original press release was:

“Leading manufacturer of custom-engineered control building solutions designed to protect critical infrastructure assets

nVent, a global leader in electrical connection and protection solutions, today announced that it has entered into a definitive agreement to acquire the parent of Trachte, LLC for a purchase price of $695 million, subject to customary adjustments. Trachte is a leading manufacturer of custom-engineered control building solutions designed to protect critical infrastructure assets.

nVent Chair and CEO Beth Wozniak said, “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. 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. We look forward to welcoming the Trachte team to nVent, and together helping to build a more sustainable and electrified world.”

Trachte has an established history of providing control building solutions, and is headquartered in Madison, Wisconsin with more than 500 employees. Trachte estimates 2024 revenues to be approximately $250 million.

nVent expects the acquisition to be accretive to adjusted earnings per share in the first year following completion of the transaction. The effective enterprise value multiple is ~12x anticipated Trachte 2024 adjusted EBITDA. The transaction is expected to close in the third quarter of 2024, subject to customary conditions, including regulatory approval. nVent expects to fund the acquisition with a combination of available cash on hand and new debt.

Upon closing of this transaction, nVent plans to operate Trachte within its Enclosures segment.”

Thoughts

• Trachte, according to nVent, sells direct. Their key markets are transmission and distribution (so utilities), renewable energy, power generation, data centers, water.)
• The business is being placed in nVent’s Enclosure group.
• I can hear Hoffman distributors and reps now. They are asking the questions of “How do I learn more about Trachte?” and “Will I have the opportunity to sell it?
• So, I asked nVent the question and they shared “As we integrate the Trachte team into nVent’s Enclosure segment, we plan to leverage the strengths of all the enclosure brands for growth and vertical market success. Any rep or distributor interested in additional information can reach out to Bob Kalivoda, Director of Sales (according to his LinkedIn profile)

And the answer is …