NVent Electric Is Mulling $1.5 Billion Cable Business Sale

Kiel Porter and Dinesh Nair, Bloomberg News

Spools of electric wire at the Kentuckiana Electrical Apprenticeship and Training (LEJATC) trade school in Louisville, Kentucky, U.S., on Tuesday, Aug. 16, 2022. The Department of Labor will release initial jobless claims figures on August 18. Photographer: Luke Sharrett/Bloomberg , Bloomberg

(Bloomberg) -- Electrical equipment maker nVent Electric Plc is considering options for its heating cables business, including a sale, that could value the unit at more than $1.5 billion, according to people familiar with the matter.

The company is working with an adviser to run an auction process for the division, said the people, who asked not to be identified because they weren’t authorized to speak publicly. The business is expected to attract interest primarily from private equity firms, though no final decision has been made and nVent may elect to keep the business, the people said.

A representative for nVent declined to comment.

A sale would be the latest example of industrial conglomerates looking to unload assets as buyers become more comfortable with high interest rates and economic uncertainty. Honeywell International Inc. is currently looking to sell its PPE business, while Johnson Controls is in the process of divesting a number of its HVAC assets, Bloomberg previously reported.

The nVent unit’s primary brand is Raychem, which includes cables for uses ranging from safety and heating to skin-effect tracing, according to the company’s website. NVent was created via the spin off of Pentair Plc’s electrical business in 2018. The company employs about 11,000 staff globally.

Its shares surged 35% this year through Wednesday’s close in New York, outpacing the broader market.