Hubbell Incorporated (NYSE: HUBB) has recently completed the acquisition of DMC Power, LLC from an affiliate of Golden Gate Capital. The acquisition was financed with net proceeds from borrowings under a new unsecured term loan facility totaling $600 million and issuances of commercial paper. DMC Power, a designer and manufacturer of connector technology systems for high voltage power infrastructure, boasts over 350 employees and two manufacturing facilities in Carson, CA and Olive Branch, MS, along with multiple distribution facilities across North America.
Hubbell, a leading manufacturer of utility and electrical solutions, reported revenues of $5.6 billion in 2024. This acquisition marks a strategic move for Hubbell as it aims to expand its capabilities and offerings in the high voltage power infrastructure segment.
The deal is expected to have a significant impact on Hubbell's financials, with metrics such as revenue, profit margins, and market share likely to be influenced by the acquisition. As Hubbell continues to integrate DMC Power into its operations, stakeholders can anticipate shifts in key financial indicators in the coming quarters. Following these announcements, the company's shares moved 0.27%, and are now trading at a price of $431.49. For more information, read the company's full 8-K submission here.
