TE Connectivity acquires Richards Manufacturing in $2.3 billion deal
TE Connectivity has entered into a definitive agreement to acquire Richards Manufacturing Co. from Oaktree Capital Management and the Bier family. The USD 2.3 billion all-cash transaction is set to strengthen TE’s position in the North American utility market by expanding its product portfolio and leveraging Richards’ expertise in underground electrical networks.
Richards, headquartered in Irvington, New Jersey, specialises in underground distribution equipment, including medium voltage cold-shrink cable accessories and network protector products. The company has seen double-digit revenue growth in recent years. Its management team will remain in place following the acquisition.
TE Connectivity CEO Terrence Curtin highlighted the strategic nature of the acquisition, emphasising TE’s continued investment in its energy business.
"The acquisition of Richards Manufacturing aligns with our strategy and positions us to further capitalise on an accelerating grid replacement and upgrade cycle in North America, driven by aging infrastructure, the increased hardening of the network and the upgrades that are required to support the increase in energy demand. We look forward to building on the momentum of Richards' growth trajectory and welcoming their talented team to TE," says Terrence Curtin, in the press release.
The deal will be financed through cash and additional debt. Upon completion, Richards will be integrated into TE’s Industrial Solutions segment, contributing approximately USD 400 million in annual sales with EBITDA margins in the mid-30% range.
