Hubbell to Acquire DMC Power for $830mln, Expects Accretion in 2026

Hubbell Incorporated plans to acquire DMC Power, Inc. for approximately $830 million in cash. The deal is expected to close by year-end 2025 and be accretive to adjusted EPS in 2026. Hubbell will finance the transaction with a combination of cash on hand and debt. Stephens Inc. and Holland & Knight LLP acted as advisors for Hubbell, while Harris Williams LLC, Lincoln International LLC, and Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as advisors for Golden Gate Capital.

Hubbell Incorporated (NYSE: HUBB) has announced a definitive agreement to acquire DMC Power, LLC for approximately $825 million in cash. The deal is expected to close by the end of 2025, subject to customary closing conditions and regulatory approvals. The transaction will be financed through a combination of Hubbell's cash on hand and debt.

DMC Power, a provider of connectors and tooling for utility substation and transmission markets, has been operating under Golden Gate Capital since 2023. The company's Swage system, which includes custom-designed Power Connectors and a patented 360° Radial Swage Tool, is designed to streamline high-voltage power infrastructure projects. DMC Power anticipates 2026 revenue of approximately $130 million and EBITDA of approximately $60 million.

Gerben Bakker, Chairman, President, and CEO of Hubbell, stated, "We are excited to add another high-growth, high-margin business to Hubbell’s Utility Solutions portfolio. As load growth, datacenter buildouts, and aging infrastructure drive significant utility substation and transmission investment, this acquisition expands Hubbell’s presence in these attractive markets."

Greg Gumbs, President of Hubbell Utility Solutions, added, "DMC Power’s swage connection system complements our existing solutions. This acquisition will deepen and broaden Hubbell’s technology offering, enabling faster and more reliable buildouts of substation infrastructure and datacenter interconnections."

Hubbell expects the acquisition to be accretive to adjusted EPS in 2026. The company aims to finance the transaction using a combination of its cash reserves and debt. Stephens Inc. served as the financial advisor to Hubbell, while Holland & Knight LLP acted as the legal advisor. Harris Williams and Lincoln International, along with Paul, Weiss, Rifkind, Wharton & Garrison LLP, served as advisors to Golden Gate Capital.

[1] https://finance.yahoo.com/news/hubbell-acquire-dmc-power-113000704.html