US utility and electrical solutions provider Hubbell has struck a deal to acquire DMC Power, a move that could reshape the high-voltage power infrastructure landscape. The acquisition, valued at $825 million in cash, targets DMC Power, a Golden Gate Capital portfolio company specialising in connectors and tooling for utility substation and transmission markets. This strategic acquisition positions Hubbell to capitalise on the growing demand for high-voltage power infrastructure, driven by load growth, data centre buildouts, and ageing infrastructure.
DMC Power’s expertise lies in designing and manufacturing connector technology systems crucial for high-voltage power infrastructure. With over 350 employees across facilities in Carson, California, and Olive Branch, Mississippi, DMC Power is poised to generate $130 million in revenue and $60 million in earnings before interest, taxation, depreciation, and amortisation for 2026. The acquisition is expected to close by the end of 2025, subject to regulatory approvals and other closing conditions. Hubbell plans to finance the deal through a combination of cash and debt.
Hubbell Chairman, President, and CEO Gerben Bakker expressed enthusiasm about the acquisition, stating, “We are excited to add another high-growth, high-margin business to Hubbell’s utility solutions portfolio.” He highlighted the deal’s potential to expand Hubbell’s presence in attractive markets driven by substantial utility substation and transmission investments.
Greg Gumbs, President of Hubbell Utility Solutions, emphasised the complementary nature of DMC Power’s swage connection system with Hubbell’s existing offerings. “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,” Gumbs said.
DMC Power CEO Tony Ward expressed gratitude to the company’s employees and customers, acknowledging their role in DMC’s success. He noted, “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.”
The acquisition is anticipated to positively impact Hubbell’s adjusted earnings per share starting from 2026. This deal could set a precedent for similar acquisitions in the sector, as companies seek to strengthen their positions in the evolving energy landscape. The integration of DMC Power’s technology into Hubbell’s portfolio may drive innovation and efficiency in high-voltage power infrastructure, potentially influencing industry standards and practices.
Financial advisory services for Hubbell were provided by Stephens, with legal counsel from Holland & Knight. Golden Gate Capital was advised by Harris Williams and Lincoln International, with legal counsel from Paul, Weiss, Rifkind, Wharton & Garrison.