Mueller Industries to acquire Nehring Electrical Works Company for up to $600m

Mueller Industries, Inc. (NYSE: MLI), a prominent manufacturer in the metals sector, has announced a definitive agreement to acquire Nehring Electrical Works Company, along with its affiliated entities, for a total consideration of approximately $575 million, with an additional potential earnout of $25 million. The transaction is set to close in the second quarter of 2024, pending regulatory approvals and customary closing conditions.

Background and Strategic Fit

Founded in 1912 and based in DeKalb, Illinois, Nehring Electrical Works Company is a leader in producing high-quality wire and cable solutions catering to the utility, telecommunication, electrical distribution, and original equipment manufacturer (OEM) markets. Nehring, with its subsidiaries Conex Cable, L.L.C., and Unified Wire & Cable, Inc., reported annual net sales of around $400 million as of December 31, 2023. This acquisition is poised to substantially enhance Mueller Industries’ portfolio in the electrical and power infrastructure sectors.

CEO Insights and Acquisition Synergies

Greg Christopher, CEO of Mueller Industries, expressed enthusiasm about the integration, stating, “We are excited to welcome Nehring into our portfolio of companies. 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.” He highlighted the strategic alignment in operational cultures and the synergistic potential, especially in copper and aluminum extrusion, which are areas of expertise for Mueller Industries.

Christopher further noted, “The acquisition is expected to be accretive to our 2024 financial results. Moreover, Nehring’s attractive margin and cash flow profile, combined with significant investments that are underway, make it well positioned to benefit from the highly anticipated infrastructure investment cycle to come.”

Financial Strategy and Outlook

The purchase will be financed through Mueller Industries’ cash on hand, and the company will maintain significant cash reserves post-transaction to support further growth initiatives. This strategic move is expected to bolster Mueller Industries’ position within the critical infrastructure markets, leveraging Nehring’s established presence and reputation.