NVent Electric (NVT) agreed to acquire the electrical products business of a company partly owned by metal and coil coatings company AZZ (AZZ) for $975 million in anticipation of increased demand for electrical operations.

The London-based provider of electrical connection solutions is buying the enclosures, switchgear and bus systems businesses of Avail Infrastructure Solutions, the companies said in separate statements on Monday.

Through a joint venture, AZZ has a 40% stake in Avail Infrastructure Solutions, while Fernweh Group owns a 60% interest, AZZ said. The electrical products group has about 1,100 employees and nine manufacturing sites in the US, according to nVent.

"The demand for control buildings, switchgear and bus systems is expected to increase with the modernization of aging electrical infrastructure, expanding electrical capacity to meet power demand and the growth of data centers," nVent Chief Executive Beth Wozniak said.

The companies expect the deal to be completed within the first half of this year. The transaction values the segment at roughly 12.5 times its anticipated trailing 12-month earnings before interest, taxes, depreciation, and amortization, they said.

Avail's electrical products group generated roughly $375 million in revenue in the 12 months ended Feb. 28, according to nVent. The acquisition is expected to be accretive to nVent's adjusted earnings per share in the first year upon completion, it said.

The divestment is in line with AZZ's goal to transform itself into "a focused industry leading provider of metal coating solutions," the company's CEO, Tom Ferguson, said. "AZZ will use the cash generated from this transaction to further reduce debt, or fund potential M&A activity."

"The acquisition by nVent is expected to bring new opportunities for the business, its employees, and its customers," Fernweh Group CEO Nick Santhanam said.