AZZ Inc. announced that Avail Infrastructure Solutions (AVAIL), in which AZZ holds a 40% non-controlling interest, has entered into a definitive agreement to sell its Electrical Products Group to nVent Electric plc for $975 million. The transaction is expected to close in the first half of calendar year 2025, subject to customary closing conditions.
The effective enterprise value multiple for the Electrical Products Group is approximately 12.5 times its anticipated trailing twelve-month EBITDA. Following the sale, AZZ will continue to own a 40% interest in AVAIL, which will then consist of AVAIL's Industrial Lighting and Welding Solutions Businesses, representing about 30% of the pre-transaction group revenue.
CEO Tom Ferguson stated that AZZ will utilize the cash generated from this transaction to further reduce debt or fund potential M&A activity. The gain on sale will be treated as a one-time adjustment to Net Income and EPS, and the reduction in joint venture equity income is expected to be offset by interest savings, thus not impacting AZZ's fiscal year 2026 earnings guidance at this time.
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