Wesco Enters into Definitive Agreement to Acquire Newark Engineering Group, Expanding Data Center Cooling and Lifecycle Services

Wesco (NYSE: WCC) entered a definitive agreement to acquire 100% of Newark Engineering Group, a Singapore-based data center cooling and lifecycle services provider, for SGD 175 million (about $136 million) on a cash-free, debt-free basis.

Rhea-AI Summary

Wesco (NYSE: WCC) entered a definitive agreement to acquire 100% of Newark Engineering Group, a Singapore-based data center cooling and lifecycle services provider, for SGD 175 million (about $136 million) on a cash-free, debt-free basis.

The deal broadens Wesco’s engineered cooling capabilities, deepens its presence in Southeast Asia, and adds Newark’s 2025 revenue of about $60 million. Wesco expects the acquisition to be EBITDA margin accretive, completed in Q3 2026, and to support growth, margin expansion, and attractive returns within the first year.

Positive

• Acquiring Newark for SGD 175 million (~$136 million) cash-free, debt-free
• Adds about $60 million of 2025 revenue from Newark
• EBITDA margin accretive asset at a multiple below Wesco’s trading multiple
• Expands data center cooling and lifecycle services in fast-growing Southeast Asia
• Wesco expects the deal to support margin expansion and attractive first-year returns

Negative

• Requires SGD 175 million (~$136 million) cash outlay for the acquisition
• Closing targeted for Q3 2026, subject to regulatory approvals and conditions

Argus Jun 9 session

+0.59% close to close Open Argus

Details

News Market Reaction – WCC

On Jun 9, the first trading day after this news, WCC closed 0.59% above the previous close.

Data tracked by StockTitan Argus for the Jun 9 session.

Key Figures

Purchase price: 175 million SGD Purchase price (USD): $136 million Newark 2025 revenue: USD $60 million +2 more

Purchase price

175 million SGD

Cash-free, debt-free acquisition of Newark

Purchase price (USD)

$136 million

Approximate USD equivalent of acquisition price

Newark 2025 revenue

USD $60 million

Newark revenue in 2025

Ownership acquired

100%

Equity stake in Newark under definitive agreement

Expected close

Q3 2026

Target closing period, subject to approvals

Previous Acquisition Reports

1 past event · Latest: Oct 31

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1. Oct 31

   Data center acquisition

   24h Move

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   Agreement to acquire Ascent, expanding data center facility management services.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

ebitda margin, hyperscale, colocation

3 terms

ebitda margin financial

"Newark generated approximately USD$60 million in revenue in 2025 and is EBITDA margin accretive"

EBITDA margin is the share of each dollar of sales that a company keeps as operating cash profit before interest, taxes, and accounting for equipment wear and long-term investments. Think of it like the cash a store has left from every sale after paying day-to-day running costs but before paying rent, loan interest or replacing old machinery. Investors use it to compare core profitability and operational efficiency across companies by removing financing and accounting differences.

hyperscale technical

"Wesco expects to expand access to hyperscale, enterprise, and colocation data center customers"

Hyperscale describes the ability of a system or operation to grow rapidly and handle extremely large amounts of work or data. It’s like a massive factory that can quickly expand its production capacity to meet soaring demand. For investors, hyperscale indicates a business’s potential to scale efficiently, often leading to increased growth and profitability.

colocation technical

"expand access to hyperscale, enterprise, and colocation data center customers"

Colocation is the practice of placing a trader’s computer servers inside or next to an exchange’s data center so their orders travel the shortest possible distance to the exchange’s computers. For investors this matters because even tiny gains in speed can mean better trade prices or reduced slippage—like being first in line at a checkout—so firms that colocate can gain steady, measurable advantages or incur extra costs that affect returns.

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PITTSBURGH, June 8, 2026 /PRNewswire/ -- Wesco International (NYSE: WCC), a leading provider of business-to-business distribution, logistics services, and supply chain solutions, today announced it has entered into a definitive agreement to acquire Newark Engineering Group ("Newark"), a Singapore-based provider of engineered cooling solutions and lifecycle services for data centers.

The acquisition expands Wesco's capabilities in data center cooling and lifecycle services and strengthens its presence in the fast-growing Southeast Asia region.

Newark specializes in the design, supply, installation, commissioning and maintenance of advanced thermal management systems that are mission-critical to data center performance and reliability. The company serves customers across Southeast Asia, including Singapore, Malaysia, and Indonesia, delivering integrated solutions across the full data center lifecycle—from design and installation to ongoing maintenance and optimization.

Under the terms of the agreement, Wesco will acquire 100% of Newark for a cash-free, debt-free purchase price of 175 million Singapore dollars (approximately $136 million USD).

"Newark provides integrated, turnkey cooling solutions, with strong partnerships and a blue-chip customer base that includes global technology and Fortune 500 companies," said John Engel, Chairman, President, and Chief Executive Officer of Wesco.

Mr. Engel continued, "This acquisition expands our participation in the data center value chain, particularly in engineered cooling and lifecycle services, and provides a strong growth platform in Southeast Asia. It's a service-led business with attractive margins, and we see a clear path to above-market growth by leveraging Wesco's global customer relationships and expanding solutions portfolio. We expect this acquisition to enhance our growth profile, support margin expansion, and generate attractive returns within the first year."

The combination creates meaningful commercial opportunities by bringing together Newark's established regional customer relationships with Wesco's global account coverage. Wesco expects to expand access to hyperscale, enterprise, and colocation data center customers while increasing share of wallet through cross-selling electrical, communications, and supply chain solutions across Newark's installed base.

Newark generated approximately USD$60 million in revenue in 2025 and is EBITDA margin accretive to the Wesco portfolio with a purchase multiple below Wesco's current trading multiple.

"Partnering with Wesco will accelerate our growth and expand our ability to serve data center customers across Southeast Asia," said Fanny Lee, Managing Director of Newark Engineering Group. "Wesco's global platform and complementary capabilities will allow us to broaden our solutions portfolio, access new customers, and scale the business."

The transaction is expected to close in the third quarter of 2026, subject to customary regulatory approvals and closing conditions.

About Newark Engineering Group

Headquartered in Singapore with offices in Malaysia and Indonesia, Newark Engineering Group is a provider of mission-critical cooling and thermal management solutions, delivering integrated customized HVAC solutions spanning design support, equipment supply, installation, commissioning and lifecycle services for data centers and other mission-critical infrastructure across Southeast Asia.

About Wesco International

Wesco International (NYSE: WCC) builds, connects, powers and protects the world. Headquartered in Pittsburgh, Pennsylvania, Wesco is a FORTUNE 500® company with approximately $24 billion in annual sales in 2025 and a leading provider of business-to-business distribution, logistics services and supply chain solutions. Wesco offers a best-in-class portfolio of electrical, communications, and utility solutions, serving customers across commercial, industrial, data center, and infrastructure markets.

Wesco Contact Information:

Scott Gaffner
Senior Vice President, Investor Relations
Investorrelations@wescodist.com

Jennifer Sniderman
Vice President, Corporate Communications
Jennifer.sniderman@wescodist.com

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SOURCE Wesco International

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Wesco (WCC) announce about acquiring Newark Engineering Group on June 8, 2026?

Wesco announced a definitive agreement to acquire 100% of Newark Engineering Group. According to Wesco, the Singapore-based data center cooling specialist strengthens its Southeast Asia presence and enhances engineered cooling and lifecycle service capabilities across the data center value chain.

What is the purchase price for Wesco’s acquisition of Newark Engineering Group (WCC)?

Wesco agreed to buy Newark for SGD 175 million, about $136 million in a cash-free, debt-free deal. According to Wesco, the acquisition multiple is below its current trading multiple and is expected to be EBITDA margin accretive to the portfolio.

How much revenue did Newark Engineering Group contribute before the Wesco (WCC) acquisition?

Newark generated approximately $60 million in revenue in 2025. According to Wesco, this business focuses on engineered thermal management and lifecycle services for data centers across Southeast Asia, including Singapore, Malaysia, and Indonesia, with solutions spanning design, installation, and maintenance.

When is Wesco’s acquisition of Newark Engineering Group (WCC) expected to close?

The Newark acquisition is expected to close in the third quarter of 2026. According to Wesco, completion remains subject to customary regulatory approvals and closing conditions, so timing and outcome depend on receiving those approvals and satisfying all agreed requirements.

How will the Newark Engineering Group acquisition impact Wesco’s data center strategy (WCC)?

The acquisition adds engineered cooling and lifecycle services to Wesco’s data center offerings. According to Wesco, it expands access to hyperscale, enterprise, and colocation customers and supports cross-selling of electrical, communications, and supply chain solutions across Newark’s established Southeast Asia customer base.

What financial benefits does Wesco expect from buying Newark Engineering Group (WCC)?

Wesco expects the deal to enhance its growth profile and support margin expansion. According to Wesco, Newark is EBITDA margin accretive, acquired at a multiple below Wesco’s trading multiple, and is anticipated to generate attractive returns within the first year after closing.