US-based industrial manufacturing company Mueller Industries has agreed to acquire wire and cable products manufacturer Nehring Electrical Works and some of its affiliated companies in a deal worth nearly $575m.
The transaction also comprises an additional earn out of $25m.
Established in 1912, Nehring Electrical Works manufactures and markets wire and cable solutions for the utility, telecommunication, electrical distribution, and original equipment manufacturer (OEM) markets.
The company operates through its three business units, namely Nehring Electrical Works Company, Conex Cable and Unified Wire & Cable.
According to Mueller Industries, Nehring Electrical Works is an approved and trusted supplier to various utilities, municipalities, REAs, telecommunications and electrical distribution companies throughout the US.
Nehring Electrical Works reported annual net sales of around $400m for the 12 months ended 31 December 2023.
Mueller Industries CEO Greg Christopher said: “This acquisition provides a substantial platform for long-term growth in the electrical and power infrastructure space and complements the other critical infrastructure sectors we support.
“In addition to its operational culture, which is well aligned with our own, the addition of Nehring leverages our deep expertise in metals, particularly copper and aluminium extrusion, and provides synergies to both companies.”
Based in Tennessee, Mueller Industries produces essential goods for important markets, including air, water, oil and gas distribution, energy transmission, medical, climate comfort, food preservation, aerospace and automotive.
The company is said to be the only vertically integrated manufacturer of copper tubes and fittings, brass rods and forgings in North America. It also has operations in Europe, Asia and the Middle East.
Mueller Industries intends to finance the deal with cash on hand. The company also aims to maintain significant cash reserves following the transaction to support further growth opportunities.
Subject to regulatory approval and customary conditions, the acquisition is anticipated to be completed during Q2 2024.
