TE Connectivity Acquires Richards Manufacturing to Strengthen Utility Grid Solutions

Industries TE Industries

Posted by TEAdmin on 2025-03-09 09:30:35 |

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Galway, Ireland – February 12, 2025 – TE Connectivity (NYSE: TEL), a global leader in connectors and sensors, has announced its acquisition of Richards Manufacturing Co. in a $2.3 billion all-cash transaction. The deal aims to enhance TE's position in serving electrical utilities across North America by integrating Richards' expertise and product portfolio, particularly in underground distribution equipment.

Richards Manufacturing, a leading provider of utility grid products, specializes in medium-voltage cold-shrink cable accessories and network protector products. With a strong track record of double-digit revenue growth, the company is expected to contribute approximately $400 million in annual sales and EBITDA margins in the mid-30% range. The acquisition aligns with TE’s strategy of investing in long-term growth trends such as grid modernization, decarbonization, and increasing energy demand.

Enhancing Grid Connectivity and Reliability
TE’s expanded portfolio will now include a broader range of solutions to tackle challenges like aging infrastructure, power outages, and regulatory changes. With over 3,300 employees, 10 engineering centers, and 12 manufacturing sites globally, TE aims to optimize grid service life, prevent failures, and improve network resilience.

Strategic Growth and Financial Impact
TE expects a mid-teens return on invested capital from this acquisition, with an estimated $0.10 increase in adjusted earnings per share in the first full year. The transaction is set to close in TE’s fiscal third quarter of 2025, pending regulatory approvals.

A Strong Partnership for the Future
Joe Bier, CEO of Richards Manufacturing, expressed confidence in TE as the ideal partner to continue the company’s legacy in supporting critical infrastructure. Oaktree Capital Management, the previous owner, also acknowledged Richards’ growth and success under its management.

This acquisition strengthens TE's commitment to innovation and reliability in energy networks, reinforcing its role as a trusted partner for utilities worldwide.

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