Hubbell to Acquire DMC Power
Hubbell (NYSE: HUBB) has announced a definitive agreement to acquire DMC Power, LLC for $825 million in cash. DMC Power, currently owned by Golden Gate Capital, specializes in connector technology systems for high voltage power infrastructure and operates manufacturing facilities in Carson, CA and Olive Branch, MS.
The acquisition strengthens Hubbell's Utility Solutions portfolio, targeting growth in utility substation and transmission markets. DMC Power projects 2026 revenue of $130 million and EBITDA of $60 million. The transaction, expected to close by end of 2025, will be financed through cash and debt, with anticipated adjusted EPS accretion in 2026.
Hubbell (NYSE: HUBB) ha annunciato un accordo definitivo per acquisire DMC Power, LLC per $825 million in contanti. DMC Power, attualmente controllata da Golden Gate Capital, è specializzata in sistemi di connettori per infrastrutture elettriche ad alta tensione e gestisce impianti produttivi a Carson (CA) e Olive Branch (MS).
L'acquisizione rafforza il portafoglio Utility Solutions di Hubbell, con l'obiettivo di crescere nei mercati delle sottostazioni e della trasmissione. DMC Power prevede ricavi 2026 pari a $130 million e EBITDA di $60 million. L'operazione, la cui chiusura è prevista entro la fine del 2025, sarà finanziata con liquidità e debito e dovrebbe determinare un aumento dell'EPS adjusted nel 2026.
Hubbell (NYSE: HUBB) ha anunciado un acuerdo definitivo para adquirir DMC Power, LLC por $825 million en efectivo. DMC Power, actualmente propiedad de Golden Gate Capital, se especializa en sistemas de conectores para infraestructuras eléctricas de alta tensión y opera plantas de fabricación en Carson (CA) y Olive Branch (MS).
La adquisición refuerza la cartera Utility Solutions de Hubbell, con la intención de crecer en los mercados de subestaciones y transmisión. DMC Power proyecta ingresos 2026 de $130 million y EBITDA de $60 million. La transacción, que se espera cerrar antes de finales de 2025, se financiará con efectivo y deuda y se prevé que incremente el EPS ajustado en 2026.
Hubbell (NYSE: HUBB)는 DMC Power, LLC를 현금 $825 million에 인수하는 최종 계약을 체결했다고 발표했습니다. 현재 Golden Gate Capital이 보유한 DMC Power는 고전압 전력 인프라용 커넥터 기술 시스템을 전문으로 하며 캘리포니아 카슨과 미시시피 올리브 브랜치에 제조 시설을 운영하고 있습니다.
이번 인수는 Hubbell의 Utility Solutions 포트폴리오를 강화해 변전소 및 송전 시장에서의 성장을 목표로 합니다. DMC Power는 2026년 매출 $130 million과 EBITDA $60 million을 전망합니다. 거래는 2025년 말까지 완료될 것으로 예상되며 현금과 차입으로 자금 조달되며 2026년 조정 EPS 증가가 기대됩니다.
Hubbell (NYSE: HUBB) a annoncé un accord définitif visant à acquérir DMC Power, LLC pour $825 million en numéraire. DMC Power, actuellement détenue par Golden Gate Capital, est spécialisée dans les systèmes de connecteurs pour les infrastructures électriques à haute tension et exploite des sites de production à Carson (CA) et Olive Branch (MS).
Cette acquisition renforce le portefeuille Utility Solutions de Hubbell, en vue de soutenir la croissance sur les marchés des postes de transformation et de la transmission. DMC Power prévoit des revenus 2026 de $130 million et un EBITDA de $60 million. La transaction, dont la clôture est attendue d'ici la fin 2025, sera financée par des liquidités et de la dette et devrait être créatrice d'EPS ajusté en 2026.
Hubbell (NYSE: HUBB) hat eine verbindliche Vereinbarung angekündigt, DMC Power, LLC für $825 million in bar zu übernehmen. DMC Power, derzeit im Besitz von Golden Gate Capital, ist auf Verbindungstechnologien für Hochspannungs-Energieinfrastruktur spezialisiert und betreibt Produktionsstätten in Carson (CA) und Olive Branch (MS).
Die Übernahme stärkt Hubbells Utility Solutions-Portfolio und zielt auf Wachstum in den Bereichen Umspannwerke und Übertragung ab. DMC Power prognostiziert Umsatz 2026 von $130 million und EBITDA von $60 million. Der Abschluss der Transaktion wird bis Ende 2025 erwartet; sie soll durch Barmittel und Fremdkapital finanziert werden und 2026 zu einem Anstieg des bereinigten Gewinns je Aktie führen.
- Strategic expansion into high-growth utility substation and transmission markets
- DMC Power projects strong margins with $60M EBITDA on $130M revenue for 2026
- Expected EPS accretion in 2026
- Complementary technology addition with DMC's swage connection system
- Enhanced presence in datacenter interconnection market
- Significant cash outlay of $825 million requiring additional debt financing
- Regulatory approvals required for closing could delay completion
- Integration risks with DMC's 350+ employees and multiple facilities
Insights
Hubbell's $825M acquisition of DMC Power expands its high-margin utility portfolio, targeting growth in datacenter and grid infrastructure markets.
Hubbell's
This acquisition specifically targets three converging infrastructure megatrends: increasing electrical load growth, accelerating datacenter construction, and aging grid infrastructure replacement. DMC's swage connection technology—which creates permanent electrical connections through mechanical compression rather than traditional methods—fills a critical technology gap in Hubbell's existing transmission and substation connector portfolio.
The strategic rationale centers on technological complementarity rather than cost synergies. By expanding Hubbell's solutions for substation infrastructure and datacenter interconnections, the company strengthens its position with utility customers at a time when grid investment is accelerating. DMC's
From a financial perspective, the all-cash transaction will be funded through existing cash reserves and new debt. With Hubbell projecting 2024 revenues of
The timing of this acquisition aligns with accelerating utility capital investment cycles driven by electrification, renewable integration, and AI infrastructure buildout—providing Hubbell with enhanced exposure to these secular growth trends through DMC's specialized connector solutions.
Shelton, CT, Aug. 12, 2025 (GLOBE NEWSWIRE) --
Hubbell to Acquire DMC Power
- Provider of connectors and tooling for utility substation and transmission markets
- Complementary technology enhances Hubbell’s Utility Solutions portfolio
- Attractive growth and margin profile aligned to megatrends in load growth, datacenter interconnection and aging infrastructure
$825 million transaction to be financed with cash and debt; anticipate adjusted EPS accretion in 2026
Hubbell Incorporated (NYSE: HUBB) today announced it has entered into a definitive agreement to acquire DMC Power, LLC, a portfolio company of Golden Gate Capital and a provider of connectors and tooling for utility substation and transmission markets, for
“We are excited to add another high growth, high margin business to Hubbell’s Utility Solutions portfolio,” said Gerben Bakker, Chairman, President and CEO. “As load growth, datacenter buildouts and aging infrastructure drive highly visible utility substation and transmission investment over the next several years, the acquisition of DMC Power expands Hubbell��s strong presence in these attractive markets.”
Greg Gumbs, President of Hubbell Utility Solutions, added, “DMC Power’s swage connection system offers a strong complement to our existing substation and transmission connector solutions. This acquisition will deepen and broaden Hubbell’s technology offering with our core customers, enabling fast, reliable buildout of substation infrastructure and datacenter interconnections while further accelerating our near and long-term growth profile.”
Javier Puig, a Managing Director at Golden Gate Capital, said, “We are thrilled with this outcome and the significant progress that DMC made as an electrical connectivity provider since our investment in 2023. During Golden Gate Capital’s ownership period, DMC experienced rapid organic growth, reflecting the company’s investments in expanded facilities and new machines, the development of innovative new products, and expansion into new market segments. We are proud to have supported Tony and the DMC team, and wish the company well in its next chapter with Hubbell.”
Tony Ward, Chief Executive Officer at DMC Power, said, “I want to extend my thanks to our dedicated employees and customers whose commitment has driven DMC’s success. As the pioneers behind swage technology for utilities, we are proud to have developed a world-class solution that is transforming the industry. By joining forces with Hubbell, we are confident that swage will accelerate its industry adoption and that our customers will continue to receive the high-quality service and solutions they have come to expect from DMC.”
DMC Power is a designer and manufacturer of connector technology systems for high voltage power infrastructure with over 350 employees and two manufacturing facilities in Carson, CA and Olive Branch, MS, along with multiple distribution facilities located across North America. DMC Power anticipates 2026 revenue of approximately
The transaction is anticipated to close by the end of 2025, subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals. Hubbell plans to finance the transaction with a combination of cash on hand and debt. The company expects the acquisition to be accretive to adjusted EPS in 2026.
Advisors
Stephens Inc. is serving as financial advisor to Hubbell, and Holland & Knight LLP is serving as legal advisor. Harris Williams and Lincoln International are serving as financial advisor to Golden Gate Capital, and Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal advisor.
About Hubbell
Hubbell Incorporated is a leading manufacturer of utility and electrical solutions enabling customers to operate critical infrastructure safely, reliably and efficiently. With 2024 revenues of
About DMC Power
DMC Power designs and manufactures the highest quality connection systems for transmission, distribution, substation, and industrial projects. The company’s Swage system, comprised of custom designed Power Connectors and a patented 360° Radial Swage Tool, has helped utilities around the world finish their projects with just the push of a button.
About Golden Gate Capital
Golden Gate Capital is a San Francisco-based private equity firm focused on partnering with management teams to build exceptional consumer, industrials, technology, and financial services companies. Since its founding in 2000, the firm has managed approximately
Contacts:
For Hubbell:
| Dan Innamorato |
| Hubbell Incorporated |
| 40 Waterview Drive |
| P.O. Box 1000 |
| Shelton, CT 06484 |
| (475) 882-4000 |
For Golden Gate Capital:
FGS Global
Forward-Looking Statements
Certain statements contained in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements generally relate to Hubbell’s expectations and beliefs regarding its financial results, condition and outlook, projections of future performance, anticipated growth and end markets, changes in operating results, market conditions and economic conditions, expected capital resources, liquidity, financial performance, pension funding, results of operations, plans, strategies, opportunities, developments and productivity initiatives, competitive positioning, and trends in particular markets or industries. In addition, all statements regarding the consummation of the proposed transaction with DMC Power (the “proposed transaction”) and the anticipated benefits to Hubbell thereof, including the timing for the proposed transaction to close and become accretive, DMC Power’s 2026 anticipated revenue and EBITDA, industry adoption of swage, as well as other statements that are not strictly historic in nature, are forward-looking statements. Forward-looking statements may be identified by the use of forward-looking words or phrases such as “believe”, “expect”, “anticipate”, “intend”, “depend”, “plan”, “estimated”, “predict”, “target”, “should”, “could”, “may”, “subject to”, “continues”, “growing”, “prospective”, “forecast”, “projected”, “purport”, “might”, “if”, “contemplate”, “potential”, “pending”, “target”, “goals”, “scheduled”, “will”, “will likely be”, and similar words and phrases. Such forward-looking statements are based on our current expectations and involve numerous assumptions, known and unknown risks, uncertainties and other factors which may cause actual and future performance or Hubbell’s achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the occurrence of any event, change or other circumstances that could give rise to the right of Hubbell or DMC Power to terminate the definitive transaction agreement governing the terms and conditions of the proposed transaction; the outcome of any legal proceedings that may be instituted against Hubbell or DMC Power; the possibility that revenue or expense synergies or the other expected benefits of the proposed transaction may not fully materialize or may take longer to realize than expected, or may be more costly to achieve than anticipated, including as a result of the impact of, or problems arising from, the integration of the two companies; the possibility that the proposed transaction may not be completed when expected or at all because required regulatory or other approvals or other conditions to closing are not received or satisfied on a timely basis or at all (and the risk that such approvals may result in the imposition of conditions that could adversely affect Hubbell or DMC Power or the expected benefits of the proposed transaction); the risk that Hubbell is unable to successfully and promptly implement its integration strategies; reputational risks and potential adverse reactions from or changes to the relationships with customers, employees or other business partners, including resulting from the announcement or the completion of the proposed transaction; diversion of management’s attention and time from ongoing business operations and other opportunities on matters relating to the proposed transaction; the impact of trade tariffs, import quotas or other trade actions, restrictions or measures taken by the United States, China, Mexico, the United Kingdom, member states of the European Union, and other countries, including the recent and ongoing potential changes in U.S. trade policies, that may be made by the current or a future presidential administration and changes in trade policies in other countries made in response to changes in the U.S. trade policies; business conditions, geopolitical conditions (including the wars in Ukraine and the Middle East, as well as trade tensions with China) and changes in general economic conditions in particular industries, markets or geographic regions, and ongoing softness in the telecommunication markets and residential market of Electrical Solutions, as well as the potential for a significant economic slowdown, macro-economic effects of the U.S. government federal deficit, continued inflation, stagflation or recession, higher interest rates, and higher energy costs; our ability to offset increases in material and non-material costs through price recovery and volume growth; effects of unfavorable foreign currency exchange rates and the potential use of hedging instruments to hedge the exposure to fluctuating rates of foreign currency exchange on inventory purchases; the outcome of contingencies or costs compared to amounts provided for such contingencies, including those with respect to pension withdrawal liabilities; achieving sales levels to meet revenue expectations; unexpected costs or charges, certain of which may be outside Hubbell’s control; failure to achieve projected levels of efficiencies, cost savings and cost reduction measures, including those expected as a result of our lean initiatives and strategic sourcing plans, regulatory issues, changes in tax laws and policies, including changes in current U.S. income tax rates, multijurisdictional implementation of the Organisation for Economic Co-operation and Development’s comprehensive base erosion and profit shifting plan, or changes in geographic profit mix affecting tax rates and availability of tax incentives; the impact of and ability to fully manage and integrate acquired businesses, including the prior acquisitions of Northern Star Holdings, Inc. (the Systems Control business), Alliance USAcqCo 2, Inc. (the Ventev business) and Nicor, Inc.; the impact of certain divestitures, including the benefits and costs of the sale of the residential lighting business; the ability to effectively develop and introduce new products, expand into new markets and deploy capital; and other factors described in our Securities and Exchange Commission filings, including in the “Business”, “Risk Factors”, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, “Forward-Looking Statements” and “Quantitative and Qualitative Disclosures about Market Risk” sections in our Annual Report on Form 10-K for the year ended December 31, 2024 and in our Quarterly Reports on Form 10-Q.
All forward-looking statements attributable to Hubbell or DMC Power are expressly qualified in their entirety by the cautionary statements set forth above. Forward-looking statements speak only as of the date they are made and Hubbell does not undertake or assume any obligation to update publicly any of these statements to reflect actual results, new information or future events, changes in assumptions, or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If Hubbell updates one or more forward-looking statements, no inference should be drawn that Hubbell will make additional updates with respect to those or other forward-looking statements.
Non-GAAP Disclosure
We believe non-GAAP measures provide useful information to our Board of Directors, management and investors regarding certain trends relating to our financial condition and results of operations. Our management uses non-GAAP measures to compare our performance to that of prior periods for trend analyses and for budgeting, forecasting and planning purposes, among others.
We do not consider non-GAAP measures an alternative to financial measures determined in accordance with GAAP, rather they supplement GAAP measures by providing additional information we believe to be useful to our shareholders. The principal limitation of these non-GAAP financial measures is they may exclude significant expense and income items that are required by GAAP to be recognized in our consolidated financial statements. In addition, they reflect the exercise of management’s judgment about which expense and income items are excluded or included in determining these non-GAAP financial measures.
EBITDA and adjusted EPS are non-GAAP measures. EBITDA represents net income (loss) before interest expense, provision for income taxes, depreciation and amortization. Adjusted EPS represents GAAP diluted EPS adjusted for the impact of certain items directly related to acquisitions and other non-recurring items, including amortization and transaction and integration costs. Reconciliations of the differences between these non-GAAP measures and the corresponding GAAP measures are not available without unreasonable effort due to potentially high variability, complexity and low visibility as to the items that would be excluded from the applicable GAAP measure in the relevant future period, such as unusual gains and losses, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, certain financing costs, and other structural changes or their probable significance. Non-GAAP financial measures should not be relied upon in evaluating the financial condition, results of operations or future prospects of Hubbell.
FAQ
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