TE Connectivity has agreed to acquire Richards Manufacturing for $2.3 billion in an all-cash transaction. This acquisition will help enhance TE’s position in the electrical utility sector in North America, particularly by capitalising on the growing demand for underground electrical networks.
Richards Manufacturing, which specialises in utility grid products, has experienced double-digit revenue growth recently. The company, based in New Jersey, provides underground distribution equipment, including medium-voltage cold-shrink cable accessories and network protector products.
Post-acquisition, Richards’ management team will continue leading the business. The transaction will be financed through cash reserves and additional debt. TE expects mid-teen returns on invested capital, factoring in tax, revenue, and cost synergies.
The acquired business will be integrated into TE’s Industrial Solutions segment, contributing an estimated $400 million in annual sales, with EBITDA margins in the mid-30% range. The first full year post-acquisition is projected to see a $0.10 increase in adjusted earnings per share.
The transaction is awaiting regulatory approvals and other standard closing conditions and is expected to be finalized in TE’s fiscal third quarter, ending June 2025.
TE Connectivity CEO, Terrence Curtin, highlighted that the acquisition aligns with the company’s strategy to focus on long-term growth trends, particularly in energy. The deal positions TE to capitalise on the accelerating grid replacement and upgrade cycle in North America, driven by aging infrastructure and increasing energy demand.
