Mueller Industries Inc MLI has entered into a definitive agreement to acquire Nehring Electrical Works Company and certain affiliated companies for approximately $575 million plus an additional $25 million earn out.
Nehring produces wire and cable solutions for the utility, telecommunication, electrical distribution, and OEM markets.
For the twelve months ended December 31, 2023, Nehring posted an annual net sales of about $400 million.
“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,” said Mueller’s CEO Greg Christopher.
The acquisition is expected to be accretive to Mueller’s 2024 financial results. The acquisition, which will be funded with cash on hand, is expected to close during the second quarter of 2024.
Mueller held $1.2 billion in cash and equivalents as of December 30, 2023.
Mueller expects to retain significant cash reserves after the transaction to support additional growth opportunities.
Price Action: MLI shares are trading higher by 0.79% at $52.69 on the last check Monday.
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