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.