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TE Connectivity to Acquire Richards Manufacturing for $2.3 Billion

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TE Connectivity (TEL.N) announced it will acquire utility grid products manufacturer Richards Manufacturing Co for approximately $2.3 billion in cash, aiming to bolster its position in the electrical utilities sector amid surging power demand.

The acquisition comes as the power needs of data centers are expected to double within five years due to the rapid development and adoption of artificial intelligence. Demand is projected to rise from 176 TWh in 2023 to between 325 and 580 TWh by 2028.

President Donald Trump recently supported a $500 billion investment pledge by tech companies and investors to build infrastructure for AI facilities, highlighting the sector’s growing energy demands. Additionally, aging grid infrastructure, increased extreme weather events, and a shift toward greener energy sources are driving the need for grid upgrades and more resilient systems.

TE Connectivity CEO Terrence Curtin said, “The acquisition of Richards Manufacturing aligns with our strategy and positions us to further capitalize on an accelerating grid replacement and upgrade cycle in North America.”

Following the news, TE Connectivity’s shares rose about 4% in pre-market trading.

The Galway, Ireland-based company will acquire Richards Manufacturing from funds managed by Oaktree Capital Management, L.P., and the Bier family, long-time owners of the business. The deal is expected to close in June, financed through a combination of cash and new debt.

Once completed, Richards Manufacturing will become part of TE’s Industrial Solutions segment, contributing an estimated $400 million to annual sales. The acquisition is expected to enhance TE’s sales growth and adjusted operating margins, with projected accretion of about 10 cents to adjusted EPS in the first full year.

Goldman Sachs & Co. LLC is serving as TE Connectivity’s financial advisor, with Davis Polk & Wardwell LLP providing legal counsel.

Goldman Sachs CEO Hints at Potential End to Apple Card Partnership Before 2030

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Goldman Sachs CEO David Solomon indicated that the company’s credit-card partnership with Apple, currently set to run through 2030, might not last until the end of the contract. During an earnings call on Wednesday, Solomon noted that while there is an agreement in place, the partnership could end before 2030. He mentioned that the Apple Card has negatively impacted Goldman’s return on equity, with a decline of 75 to 100 basis points last year. However, Solomon expects this impact to improve by 2025 and 2026.

The business, which falls under Goldman’s platform solutions unit, reported an $859 million annual net loss in 2024. Reports also suggest that JPMorgan Chase is in discussions with Apple to potentially replace Goldman Sachs as the tech giant’s credit-card partner.

 

Apple Negotiates with Barclays and Synchrony to Replace Goldman Sachs in Credit Card Partnership

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Apple is currently in talks with Barclays and Synchrony Financial to replace Goldman Sachs as its credit card partner, according to sources familiar with the matter. This move comes as Goldman Sachs steps back from its consumer finance ambitions, following the launch of the Apple Card in 2019. Barclays and Synchrony are now vying for the opportunity to partner with one of the world’s most recognizable brands, although the original terms of the deal were viewed as risky and unprofitable by several financial firms.

Negotiations between Apple and Barclays have been ongoing for several months, but sources suggest that it could take some time to finalize a deal. JPMorgan Chase has also been in talks with Apple regarding the partnership. Despite the credit card agreement between Apple and Goldman Sachs lasting until 2030, Goldman’s CEO David Solomon mentioned during an earnings call that the partnership may end sooner than expected.

Goldman Sachs has been scaling back its consumer business after spending billions to cover potential losses. In 2024, the company transferred its General Motors credit card business to Barclays, allowing the latter to expand its card offerings in the U.S. This shift aligns with Goldman’s decision to reduce its retail ambitions, focusing instead on its traditional investment banking and trading operations.