NEW YORK and OREGON, Wis., June 6, 2024 /PRNewswire/ -- Palladium Equity Partners, LLC (along with its affiliates, "Palladium"), a middle market private equity firm, announced today that it has signed a definitive agreement under which it will sell its majority interest in Trachte, LLC ("Trachte"), a leading provider of highly engineered protection and control buildings with mission critical applications, to an affiliate of nVent Electric plc (NYSE: NVT) ("nVent") for $695 million.

Trachte's products and services are a critical part of protecting essential controls, equipment, and infrastructure for electric utilities, data centers, and other commercial and industrial customers.

Palladium, which focuses on transforming family and founder-owned businesses, acquired its majority stake in Trachte in 2020.

Scott Kirschner, a Principal at Palladium Equity Partners, said, "We are extremely proud of the results achieved at Trachte over the past four years and want to thank Rafael-Diaz Granados, Shawn Smith and the entire Trachte team for their partnership. We are excited to continue to see the additional growth potential that the partnership with nVent will bring to the business, its customers and employees, as they capitalize on the multi-generational tailwinds in the markets they serve."

Shawn Smith, Chief Executive Officer of Trachte, said, "We are very grateful for Palladium's partnership and support during which time our company experienced a significant period of growth and advanced its positioning in the market. Palladium's team brought a wealth of experience, knowledge and resources to Trachte, helping continue upon the tremendous legacy built by the Trachte family since 1901. We are thrilled to join nVent, which will bring additional resources to allow us to continue to serve our customers better."

Rafael-Diaz Granados, Chairman of Trachte and longtime operating executive at Palladium, stated, "The Palladium team has once again excelled in building a business. This is the third portfolio company I've partnered with them on, and their expertise in building leadership teams, enhancing operations, and driving growth is unmatched. They were also crucial in executing a growth strategy that expanded Trachte's end markets and doubled its manufacturing footprint."

Daniel Ilundain, Partner and Co-Head of Flagship Funds of Palladium, added, "Our investment in Trachte represents yet another excellent example of how Palladium accelerates value creation and drives the businesses in which it invests to the next level. Since acquiring Trachte in 2020, we have worked hand in hand with their team as the Company has grown tremendously, all while providing critical infrastructure products which help power our communities. We wish them all the best as they enter a new partnership with nVent."

Harris Williams LLC served as financial advisor to Trachte on the transaction. Baird served as advisor to the Board of Directors of Trachte. Morrison & Foerster, LLP served as legal advisor to Trachte.

About Trachte, LLC
Trachte is a leading provider of easy-deployment application-engineered protection and control buildings. Founded in 1919, the company has unparalleled experience in prefabricated structures that provide state-of-the-art environments and protection for its customers' investments in critical equipment and systems such as switchgear, battery systems, servers, and data center hardware that control and protect electrical infrastructure and equipment. Trachte's success is based on continuous technological advancement, quality improvement and mutually beneficial relationships and strategic partnerships with end users, consulting engineers, contractors, OEMs and value-added resellers. Additional information may be found at www.trachteusa.com.

About nVent
nVent is a leading global provider of electrical connection and protection solutions. We believe our inventive electrical solutions enable safer systems and ensure a more secure world. We design, manufacture, market, install and service high performance products and solutions that connect and protect some of the world's most sensitive equipment, buildings and critical processes. We offer a comprehensive range of enclosures, electrical connections and fastening and thermal management solutions across industry-leading brands that are recognized globally for quality, reliability and innovation. Our principal office is in London and our management office in the United States is in Minneapolis. Our robust portfolio of leading electrical product brands dates back more than 100 years and includes nVent CADDY, ERICO, HOFFMAN, ILSCO, RAYCHEM and SCHROFF.

nVent CADDY, ERICO, HOFFMAN, ILSCO, RAYCHEM and SCHROFF are trademarks owned or licensed by nVent Services GmbH or its affiliates.

About Palladium Equity Partners, LLC
Since its founding in 1997, Palladium has invested in more than 210 companies (40 platforms and more than 170 add-ons). With over $3 billion in AUM, the firm focuses primarily on buyout equity investments in the range of $50 million to $150 million. Palladium seeks to acquire and grow companies in partnership with founders and experienced management teams by providing capital and strategic guidance. The partners of the firm have meaningful experience in consumer, services, industrials, and healthcare businesses, with a special focus on companies they believe will benefit from the growth in the U.S. Hispanic population. For more information, visit www.palladiumequity.com.

Contacts:

For Palladium Equity Partners:
Todd Fogarty / Jeffrey Taufield
todd.fogarty@kekstcnc.com or jeffrey.taufield@kekstcnc.com
212-521-4800

 

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SOURCE Palladium Equity Partners

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