Vertiv to buy E&I Engineering for up to $2 billion, cuts profit and sales outlook citing supply challenges

Vertiv Holdings LLC announced Wednesday an agreement to buy E&I Engineering Ireland Ltd., and its affiliate Powerbar Gulf LLC, in a deal valued at up to $2 billion. Separately, Vertiv cut its financial outlook, as worse-than-expected supply chain challenges are offsetting continued "robust" demand. Under terms of the deal, Vertiv, a digital infrastructure company, will make an upfront payment of $1.8 billion, consisting of $1.17 billion in cash and $630 million worth of Vertiv shares. The deal could also include up to an additional $200 million in cash for achieving certain profit milestones. E&I provide electrical switchgear and power distribution systems. The company cut its guidance ranges for third-quarter adjusted earnings per share to 17 cents to 20 cents from 26 cents to 30 cents and for sales to $1.21 billion to $1.25 billion from $1.26 billion to $1.30 billion. The FactSet consensus is for EPS of 29 cents and sales of $1.28 billion. Vertiv's stock, which was still inactive in premarket trading, has run up 50.2% year to date, while the S&P 500 has gained 20.3%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Vertiv to buy E&I Engineering for up to $2 billion, cuts profit and sales outlook citing supply challenges
Vertiv Holdings LLC announced Wednesday an agreement to buy E&I Engineering Ireland Ltd., and its affiliate Powerbar Gulf LLC, in a deal valued at up to $2 billion. Separately, Vertiv cut its financial outlook, as worse-than-expected supply chain challenges are offsetting continued "robust" demand. Under terms of the deal, Vertiv, a digital infrastructure company, will make an upfront payment of $1.8 billion, consisting of $1.17 billion in cash and $630 million worth of Vertiv shares. The deal could also include up to an additional $200 million in cash for achieving certain profit milestones. E&I provide electrical switchgear and power distribution systems. The company cut its guidance ranges for third-quarter adjusted earnings per share to 17 cents to 20 cents from 26 cents to 30 cents and for sales to $1.21 billion to $1.25 billion from $1.26 billion to $1.30 billion. The FactSet consensus is for EPS of 29 cents and sales of $1.28 billion. Vertiv's stock, which was still inactive in premarket trading, has run up 50.2% year to date, while the S&P 500 has gained 20.3%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.