TE Connectivity to Acquire Richards Manufacturing for $2.3 Billion in Strategic Growth Move

TE Connectivity plc (NYSE: TEL), a global leader in connectors and sensors, announced on February 12, 2025, its agreement to acquire Richards Manufacturing Co. for approximately $2.3 billion in cash. This strategic move aims to bolster TE Connectivity's presence in the North American electrical utilities market by integrating Richards Manufacturing's specialized product offerings and expertise in underground electrical networks.

Richards Manufacturing, headquartered in Irvington, New Jersey, specializes in utility grid products, including medium voltage cold-shrink cable accessories and network protector products. The company has experienced double-digit revenue growth in recent years, reflecting its strong market position and expertise in the electrical utilities sector.

The acquisition aligns with TE Connectivity's strategy to invest in long-term growth trends, particularly in utility-scale renewables and grid reliability. By integrating Richards Manufacturing's product offerings and expertise, TE aims to capitalize on the accelerating grid replacement and upgrade cycle in North America. This cycle is driven by factors such as aging infrastructure, increased network hardening, and the need to support rising energy demand.

Terrence Curtin, CEO of TE Connectivity, stated, "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."

TE Connectivity plans to finance the $2.3 billion acquisition through a combination of cash and additional debt. The company expects the transaction to be accretive to its sales growth and adjusted operating margins, with an anticipated addition of approximately $0.10 to adjusted earnings per share in the first full year. Richards Manufacturing is projected to contribute around $400 million in annual sales, with EBITDA margins in the mid-30% range.

The acquisition comes at a time when the demand for power is surging, driven by the rapid development of artificial intelligence and the need for more resilient infrastructure due to aging systems, extreme weather events, and green energy initiatives. By enhancing its capabilities in the electrical utilities market, TE Connectivity is positioning itself to meet these growing demands and contribute to the modernization and reliability of the energy grid.

The transaction is expected to close by June 2025, pending regulatory approvals and customary closing conditions. Upon completion, Richards Manufacturing will be integrated into TE's Industrial Solutions segment.

This acquisition marks a significant step for TE Connectivity in strengthening its position in the North American electrical utilities market and addressing the increasing demand for grid modernization and reliability.