Hubbell, a global manufacturer of utility and electrical solutions, has agreed to acquire DMC Power, a provider of connectors and tooling for the utility substation and transmission markets. Valued at $825 million in cash, the acquisition is expected to enhance Hubbell’s position in the utility power infrastructure market.
DMC Power designs and manufactures connector technology systems, employing over 350 people across two facilities in California and Mississippi, as well as multiple distribution locations in North America. The company anticipates revenues of about $130 million and EBITDA of about $60 million by 2026.
The acquisition aligns with Hubbell’s strategy to expand in high-growth sectors of the utility industry. By integrating DMC Power’s technology, Hubbell aims to better serve its customers in substation and transmission markets.
The transaction is expected to close by the end of 2025, pending regulatory approvals. Hubbell plans to finance the acquisition with a combination of cash and debt, expecting it to have a positive impact on adjusted earnings per share (EPS) in 2026.
Advisors: Stephens Inc. serves as the financial advisor to Hubbell, and Holland & Knight LLP serves as the legal advisor. Harris Williams and Lincoln International are serving as financial advisors to Golden Gate Capital, and Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal advisor.
KEY QUOTES:
“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 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.”
Gerben Bakker, Chairman, President and CEO
“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.”
Greg Gumbs, President of Hubbell Utility Solutions
“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.”
Javier Puig, a Managing Director at Golden Gate Capital
“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.”
Tony Ward, Chief Executive Officer at DMC Power
