(Bloomberg) -- Brookfield Asset Management has agreed to acquire nVent Electric Plc’s heating cables business for $1.7 billion in cash.
The transaction is expected to close by early next year, subject to regulatory approvals, according to a statement on Thursday. Nvent, an electrical equipment maker, had been considering options for the business, Bloomberg News reported in May.
The nVent unit’s primary brand is Raychem, which includes cables for uses ranging from safety and heating to skin-effect tracing. NVent was created via the spinoff of Pentair Plc’s electrical business in 2018. It generated $595 million in sales last year with about 1,700 employees globally.
Shares of nVent gained almost 4% in pre-market trading in New York. The stock has advanced about 23% this year, giving the company a market value of about $12 billion.
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 looking to sell its personal protective equipment business, Bloomberg News reported previously. Johnson Controls International Inc., which had sought to divest some assets, agreed last month to sell heating and ventilation assets for $8 billion to Robert Bosch GmbH.
--With assistance from Fareed Sahloul.
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