Latest news with #DMCPower
Yahoo
3 days ago
- Business
- Yahoo
Hubbell to acquire DMC Power for $825m
US utility and electrical solutions provider Hubbell has signed a definitive agreement to acquire DMC Power, a portfolio company of Golden Gate Capital, for $825m in cash. DMC Power is a provider of connectors and tooling for utility substation and transmission markets. It designs and manufactures connector technology systems essential for high-voltage power infrastructure. The company has more than 350 employees across two manufacturing facilities in Carson, California, and Olive Branch, Mississippi, and multiple distribution facilities throughout North America. For 2026, DMC Power expects revenue of $130m with an earnings before interest, taxation, depreciation and amortisation forecast of $60m. Hubbell chairman, president and CEO Gerben Bakker stated: 'We are excited to add another high-growth, high-margin business to Hubbell's utility solutions portfolio. 'As load growth, datacentre 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.' The transaction is expected to be finalised by the end of 2025 after meeting all necessary closing conditions, including regulatory approvals. To finance the acquisition, Hubbell intends to use a combination of cash and debt. Hubbell utility solutions president Greg Gumbs stated: 'DMC Power's swage connection system [a mechanical connection that joins two components, often pipes or tubes, by fitting one part tightly around the other] 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 datacentre interconnections while further accelerating our near and long-term growth profile.' The deal is anticipated to positively impact Hubbell's adjusted earnings per share from 2026. DMC Power CEO Tony Ward stated: '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.' Financial advisory services for Hubbell were provided by Stephens, with legal counsel provided by Holland & Knight. Harris Williams and Lincoln International are acting as financial advisors to Golden Gate Capital, while Paul, Weiss, Rifkind, Wharton & Garrison is providing legal counsel. "Hubbell to acquire DMC Power for $825m" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
4 days ago
- Business
- Yahoo
Hubbell Expands Grid Infrastructure Capabilities With DMC Power Deal
Hubbell Incorporated (NYSE:HUBB) will acquire DMC Power LLC for $825 million in cash, expanding its Utility Solutions portfolio with patented swage connection technology for high-voltage infrastructure. The deal is expected to close by year-end 2025 and will be funded with cash and debt. The acquisition supports Hubbell's growth strategy amid rising power demand, data center construction and aging grid infrastructure. Chairman, President, and CEO Gerben Bakker said DMC Power's high-margin business aligns with Hubbell's focus on long-term utility investment. Also Read: Senator Mullin Discloses Stock Trades 2.5 Years After They Were Made, Including One Up 134.5% Greg Gumbs, president of Hubbell Utility Solutions, said the swage system complements existing connector offerings and will enable faster, more reliable substation and data center buildout. Private equity firm Golden Gate Capital acquired DMC Power in 2023. Managing Director Javier Puig cited rapid expansion under its ownership, including new products and facility investments. CEO Tony Ward said partnering with Hubbell will accelerate swage adoption while maintaining customer service standards. DMC Power forecasts 2026 revenue of about $130 million and EBITDA of roughly $60 million. Hubbell expects the acquisition to be accretive to adjusted earnings per share in 2026. DMC employs more than 350 people and operates plants in Carson, California, and Olive Branch, Mississippi, with distribution centers across North America. Hubbell held cash and cash equivalents of $382.6 million as of June 30, 2025. Price Action: HUBB shares closed 0.27% lower at $417.54 on Monday. Read Next: Photo via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Hubbell Expands Grid Infrastructure Capabilities With DMC Power Deal originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Why Hubbell (HUBB) Stock Is Up Today
What Happened? Shares of electrical and electronic products company Hubbell (NYSE:HUBB) jumped 3.2% in the afternoon session after it agreed to acquire DMC Power, a provider of electrical grid components, for $825 million in cash. DMC Power provides critical connectors and tooling for utility substation and transmission markets. Hubbell's management stated the deal expands its presence in attractive markets, driven by growing power demand from datacenter buildouts and the need to upgrade aging infrastructure. The acquisition is expected to close by the end of 2025 and begin contributing to Hubbell's adjusted earnings per share in 2026. Supporting the stock's move was a broader rally in the Industrials sector, fueled by a favorable inflation report which raised hopes for a Federal Reserve interest rate cut. After the initial pop the shares cooled down to $432.24, up 3.5% from previous close. Is now the time to buy Hubbell? Access our full analysis report here, it's free. What Is The Market Telling Us Hubbell's shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. The previous big move we wrote about was 14 days ago when the stock dropped 3.2% on the news that the company reported mixed second-quarter financial results, where a miss on revenue overshadowed a strong earnings beat. The electrical products manufacturer posted revenue of $1.48 billion, which fell short of analysts' consensus estimates of $1.51 billion. This top-line miss appeared to concern investors more than the company's otherwise strong bottom-line performance. Hubbell reported adjusted earnings of $4.93 per share, significantly surpassing Wall Street expectations. Furthermore, the company raised its full-year earnings guidance to a range of $17.65 to $18.15 per share. Despite the positive earnings and improved outlook, the market's reaction suggested that the slowdown in sales growth weighed heavily on sentiment. Hubbell is up 2.9% since the beginning of the year, and at $432.24 per share, it is trading close to its 52-week high of $472.12 from November 2024. Investors who bought $1,000 worth of Hubbell's shares 5 years ago would now be looking at an investment worth $2,939. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Star
5 days ago
- Business
- The Star
Electrical component maker Hubbell to buy peer DMC Power for $825 million
U.S. Dollar banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration (Reuters) -Hubbell said on Tuesday it will acquire smaller peer DMC Power for $825 million in cash, as the electrical equipment maker bolsters its critical components portfolio to meet an expected boom in power demand. DMC designs and makes connector technology systems for high-voltage power infrastructure, and complements Hubbell's existing substation and transmission connector solutions, the acquiring firm said. Growing demand for artificial intelligence has fueled investments into modern data centers, in turn boosting the requirement for power infrastructure and components, and benefiting manufacturers like Hubbell and DMC Power. "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," said Hubbell CEO Gerben Bakker. Last month, Hubbell raised its annual profit forecast banking on strong demand for its products. DMC has more than 350 employees and two manufacturing facilities along with multiple distribution facilities located across North America, Hubbell said. Hubbell expects the deal to close by the end of this year, and boost its adjusted earnings per share in 2026. It plans to finance the transaction with a combination of cash on hand and debt. (Reporting by Anshuman Tripathy in Bengaluru; Editing by Leroy Leo)
CNA
5 days ago
- Business
- CNA
Electrical component maker Hubbell to buy peer DMC Power for $825 million
Hubbell said on Tuesday it will acquire smaller peer DMC Power for $825 million in cash, as the electrical equipment maker bolsters its critical components portfolio to meet an expected boom in power demand. DMC designs and makes connector technology systems for high-voltage power infrastructure, and complements Hubbell's existing substation and transmission connector solutions, the acquiring firm said. Growing demand for artificial intelligence has fueled investments into modern data centers, in turn boosting the requirement for power infrastructure and components, and benefiting manufacturers like Hubbell and DMC Power. "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," said Hubbell CEO Gerben Bakker. Last month, Hubbell raised its annual profit forecast banking on strong demand for its products. DMC has more than 350 employees and two manufacturing facilities along with multiple distribution facilities located across North America, Hubbell said. Hubbell expects the deal to close by the end of this year, and boost its adjusted earnings per share in 2026. It plans to finance the transaction with a combination of cash on hand and debt.
