AZZ to Divest AVAIL's Electrical Products Group to nVent Electric

AZZ Inc.’s AZZ unit, Avail Infrastructure Solutions (AVAIL), recently inked a deal to divest its electrical enclosures, switchgear and bus systems businesses (the Electrical Products Group) to nVent Electric plc NVT. The deal is valued at $975 million. The enterprise value multiple is about 12.5 times the projected trailing twelve-month EBITDA of the Electrical Products Group.Based in London, the United Kingdom, nVent Electric is engaged in designing and manufacturing electrical connection and protection solutions in North America, Europe, the Middle East, Africa and the Asia Pacific. The company promotes its products via electrical distributors, retailers, contractors and original equipment manufacturers.The divestment of the Electrical Products Group will help AZZ to focus on its core businesses while supporting its capital allocation priorities. It will support the company’s strategy to become the primary supplier of metal coating solutions. AZZ expects to use the cash proceeds of the transaction, net of modest taxes, to reduce its debt and for M&A activity.In 2022, AZZ and Fernweh Group LLC formed a joint venture, with AZZ holding a 40% stake and Fernweh Group LLC owning the remaining 60% in AVAIL. After the sale, the company will retain its 40% stake in AVAIL. It will include AVAIL’s Industrial Lighting and Welding Solutions businesses, which will account for about 30% of the group's revenues prior to the transaction.The transaction is expected to close in the first half of 2025, subject to closing approvals.AZZ’s Zacks Rank and Price PerformanceAZZ currently carries a Zacks Rank #2 (Hold). In the past year, the stock has gained 22.1% against the industry’s 16.9% decline.Image Source: Zacks Investment ResearchOther Stocks to ConsiderOther top-ranked companies are discussed below.RBC Bearings Incorporated RBC currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.RBC delivered a trailing four-quarter average earnings surprise of 4.9%. In the past 60 days, the Zacks Consensus Estimate for RBC’s fiscal 2025 earnings has increased 1.2%.Enersys ENS presently sports a Zacks Rank of 1. The company delivered a trailing four-quarter average earnings surprise of 1.6%.In the past 60 days, the consensus estimate for ENS’ fiscal 2025 earnings has increased 7.2%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RBC Bearings Incorporated (RBC): Free Stock Analysis Report AZZ Inc. (AZZ): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report nVent Electric PLC (NVT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks