Hubbell to Acquire DMC Power for $825 Million
Deal News | Aug 12, 2025 | Golden Gate Capital Partners
Hubbell Incorporated has entered into a definitive agreement to acquire DMC Power, LLC from Golden Gate Capital for $825 million in cash, subject to customary adjustments. This acquisition aligns with Hubbell's strategic initiative to expand its Utility Solutions portfolio, addressing the growing needs in utility substation and transmission markets driven by load growth, datacenter interconnection, and aging infrastructure. DMC Power, known for its swage connection systems, complements Hubbell's existing offerings, promising significant growth and margin profile. The transaction is anticipated to close by the end of 2025, expecting to be accretive to adjusted EPS in 2026. During its ownership by Golden Gate Capital, DMC Power experienced rapid growth through strategic investments in facilities and products. The acquisition will further propel DMC's industry-transformative swage technology under Hubbell's stewardship.
Sectors
- Electrical Equipment
- Private Equity & Investment
- Utilities
Geography
- United States – The key entities involved—Hubbell, DMC Power, and Golden Gate Capital—are based in the U.S., with operations and headquarters in different states.
- North America – DMC Power has multiple distribution facilities across North America, extending the geographic impact of the transaction.
Industry
- Electrical Equipment – DMC Power provides high-quality connection systems for electrical infrastructure, while Hubbell is a leading manufacturer in utility and electrical solutions.
- Private Equity & Investment – Golden Gate Capital, as a private equity firm, is the owner of DMC Power and is involved in the sale transaction.
- Utilities – Both DMC Power and Hubbell have significant operations in the utility sector, focusing on substation and transmission infrastructure.
Financials
- $825 million – The acquisition price for DMC Power by Hubbell.
- $130 million – DMC Power's anticipated 2026 revenue.
- $60 million – DMC Power's anticipated 2026 EBITDA.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Hubbell Incorporated | Acquirer | Company | A leading manufacturer of utility and electrical solutions. |
| DMC Power, LLC | Target Company | Company | A provider of connectors and tooling for utility substation and transmission markets. |
| Golden Gate Capital | Vendor | Company | A private equity firm that owns DMC Power. |
| Stephens Inc. | Financial Advisor to Hubbell | Company | |
| Holland & Knight LLP | Legal Advisor to Hubbell | Company | |
| Harris Williams and Lincoln International | Financial Advisors to Golden Gate Capital | Company | |
| Paul, Weiss, Rifkind, Wharton & Garrison LLP | Legal Advisor to Golden Gate Capital | Company |