Hubbell Inc. announced on Tuesday that it will acquire peer DMC Power for $825 million in cash, aiming to expand its portfolio of high-voltage power components as demand for electricity surges.
California-based DMC Power specializes in designing and manufacturing connector technology systems for high-voltage power infrastructure, a business that complements Hubbell’s substation and transmission connector solutions. The acquisition comes as utilities and manufacturers prepare for increasing electricity needs driven by artificial intelligence, modern data centers, and upgrades to aging infrastructure.
“As load growth, datacenter buildouts and aging 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,” said Hubbell CEO Gerben Bakker.
Hubbell, which recently raised its annual profit forecast due to rising demand, expects the deal to enhance its long-term growth. DMC Power employs more than 350 people, operates two manufacturing facilities, and maintains multiple distribution sites across North America.
The acquisition is expected to close by the end of 2025. Hubbell projects that the deal will boost adjusted earnings per share beginning in 2026. The company plans to finance the purchase through a mix of cash reserves and debt.