Hubbell, a prominent U.S. utility and electrical solutions provider, has entered into a definitive agreement to acquire DMC Power for $825 million in cash. This acquisition by Hubbell is a very smart, aggressive strategic move that positions them well. The company is continuing its efforts to bolster its portfolio in the utility solutions sector. DMC Power DMC Powers innovative products are a dynamic force revolutionizing the utility industry. It continues to do so today under the business model Golden Gate Capital sought.
We anticipate finalizing the complex transaction by the end of 2025. This timeline is contingent upon the timely receipt of all necessary regulatory approvals and closing conditions. This transaction will be accretive to Hubbell’s adjusted earnings per share beginning in 2026. It’s an important moment for the company, as it seeks to build out from its initial years of rapid growth.
Financial Expectations and Growth
DMC Power expects their revenue to be about $130 million by 2026. Additionally, they anticipate this will lead to around $60 million in earnings before interest, taxation, depreciation and amortization (EBITDA). These projections show some of the revenue-producing potential that DMC Power adds to Hubbell’s already diverse operations.
Gerben Bakker, chairman, president, and CEO of Hubbell, expressed enthusiasm regarding the acquisition:
“We are excited to add another high-growth, high-margin business to Hubbell’s utility solutions portfolio.”
DMC Power boasts a highly qualified operational base with over 350 employees. Their advanced manufacturing facilities in Carson, California and Olive Branch, Mississippi are examples of this innovation. DMC Power’s various North American distribution facilities. Its strategic positioning makes it one of the key players in the utilities sector.
“As load growth, data center buildouts and ageing 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.”
DMC Power’s Operational Footprint
Tony Ward, CEO of DMC Power, acknowledged the contributions of his team in building a successful business:
This operational strength dovetails nicely into Hubbell’s strategic bottom line goals of profitable growth and innovation within the utility market.
“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.”
Harris Williams and Lincoln International are acting as financial advisors to Golden Gate Capital in this transaction. Furthermore, Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal adviser to Golden Gate Capital. As the companies move forward with this acquisition, they will work diligently to meet the regulatory requirements necessary for closing.
Advisory Roles and Next Steps
Harris Williams and Lincoln International will serve as financial advisors to Golden Gate Capital during this transaction. Additionally, Paul, Weiss, Rifkind, Wharton & Garrison is providing legal counsel to Golden Gate Capital. As the companies move forward with this acquisition, they will work diligently to meet the regulatory requirements necessary for closing.