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TE Connectivity to Acquire Richards Manufacturing in $2.3B Deal
Slice of Manufacturing Team
February 21, 2025
Key Highlights:
TE Connectivity (NYSE: TEL) to acquire Richards Manufacturing from Oaktree Capital and the Bier family.
$2.3 billion all-cash transaction, expected to close by TE's fiscal Q3 2025.
Richards' expertise in underground electrical networks will complement TE’s energy business.
The deal adds ~$400 million in annual sales with EBITDA margins in the mid-30% range.
TE expects $0.10 accretion to adjusted EPS in the first full year post-closing.
Source: PR Newswire
Notable Quotes:
“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.”
“We believe TE is a great home for the business our family has built and are excited for a bright future ahead for Richards in TE.”
“Oaktree is proud to have supported Richards through a transformative phase of development. We wish the team continued success as part of TE.”
Why This Matters:
This acquisition reflects TE Connectivity's strategic expansion into energy infrastructure, capitalizing on the growing need for grid modernization and renewable energy integration. With aging infrastructure and rising energy demands, the move positions TE to play a crucial role in North America’s grid reliability and modernization efforts. The deal also strengthens TE’s financial outlook with anticipated synergies and strong margin contributions from Richards.