Nvent Electric Plc · NYSE:NVT
Nvent Electric — Merger or Acquisition (April 2023)
11 slides from Nvent Electric's merger presentation, Apr 3, 2023
Slide 1: Acquisition of ECM Industries
Acquisition of ECM Industries April 3, 2023 1
Slide 2: Forward-Looking Statement and Key Definitions
Forward-Looking Statement and Key Definitions CAUTION CONCERNING FORWARD-LOOKING STATEMENTS This presentation contains statements that we believe to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of hi
Slide 3: Executive Summary
Executive Summary nVent intends to acquire ECM Industries for $1.1 billion; 10.6X multiple on ECM LTM Adjusted 1 EBITDA.* ECM Industries is a leading provider of high-value electrical connectors, tools and test instruments, 2 and cable management with revenue of $415 million.* ECM Industries complem
Slide 4: Strategic Drivers
nVent Strategy One nVent Strategic Drivers High-growth New products and Global growth verticals innovation Grow Acquisitions and partnerships Productivity and Transform Digital acceleration Working capital velocity Acquisition of ECM Industries aligns to our strategy 4
Slide 5: ECM Industries Overview
ECM Industries Overview Company Overview ▪ North American provider of electrical connectivity ECM Industries is a leading provider of high-value electrical connectors, tools and products with ~1,400 employees test instruments, and cable management Connectivity (~60% of revenue) ▪ Headquartered in Ne
Slide 6: High-Growth Vertical Opportunities
High-Growth Vertical Opportunities nVent Reported Industrial: Comm/Res: Infrastructure: Energy: Verticals Industrial Solutions Commercial Data Solutions Energy Transition* Power Utilities ▪ Industrial automation ▪ Smart buildings ▪ Clean fuels ▪ Digitalization ▪ Density of Power & Data ▪ Carbon capt
Slide 7: ECM Fits Our Acquisition Framework
ECM Fits Our Acquisition Framework nVent Acquisition Framework Great Products High-Growth Verticals ▪ Complementary power connection and ▪ Commercial Solutions grounding solutions portfolio ▪ Power Utilities Invest to Great ▪ Extends nVent’s cable management offering with ▪ Data Solutions Grow Produ
Slide 8: Transaction Summary
Transaction Summary ▪ $1.1 billion purchase price, subject to customary adjustments Key ▪ Enterprise value multiple of approximately 10.6x for ECM LTM Adjusted EBITDA* Highlights ▪ Deal to be funded by cash on hand and new debt ▪ Intent to maintain investment grade metrics ▪ ECM Industries revenue o
Slide 9: Appendix and GAAP to Non-GAAP Measurements & Reconciliations
Appendix and GAAP to Non-GAAP Measurements & Reconciliations 9
Slide 10: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Reconciliation of Earnings Before Income Taxes to Adjusted EBITDA of nVent Electric plc For the Twelve-month Period Ended December 31, 2022 (Unaudited) In millions Net sales $ 2,909.0 Income before income taxes 472.6 Other expense (income) (63.4) Net int
Slide 11: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Reconciliation of Earnings Before Income Taxes to Adjusted EBITDA of ECMI Holdings, LLC ("ECM") For the Twelve-month Period Ended February 28, 2023 (Unaudited) In millions Net sales $ 415.3 Income before income taxes 17.9 Adjustments: Net interest expens