TE Connectivity plc, a global leader in connectors and sensors, has completed its acquisition of Richards Manufacturing Co., a North American utility grid products manufacturer, for approximately $2.3 billion in cash. The deal, announced on February 12, 2025, and finalized on April 1, 2025, aims to strengthen TE Connectivity's position in the electrical utilities market amid increasing energy demands and infrastructure modernization efforts.

Richards Manufacturing, headquartered in Irvington, New Jersey, specializes in underground distribution equipment and has experienced significant revenue growth in recent years. The acquisition is expected to contribute approximately $400 million in annual sales to TE Connectivity and enhance the company's adjusted operating margins and sales growth.

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

The transaction was financed through a combination of cash reserves and additional debt. TE Connectivity announced the pricing of €500 million in 2.500% senior notes due 2028, with the net proceeds intended for general corporate purposes, including the repayment of debt incurred in connection with the Richards Manufacturing acquisition.

The Richards Manufacturing management team will continue to lead the business post-acquisition, ensuring continuity during the integration process.

This acquisition comes at a time when the North American power grid is undergoing significant modernization efforts. Aging infrastructure, coupled with increasing energy demands from sectors such as artificial intelligence and data centers, necessitates substantial investments in grid reliability and capacity. By acquiring Richards Manufacturing, TE Connectivity is strategically positioning itself to meet these evolving needs and strengthen its leadership in serving utilities and energy customers globally.

TE Connectivity's stock (NYSE: TEL) has shown resilience amid these strategic moves. As of May 24, 2025, the stock was trading at $157.56, reflecting investor confidence in the company's growth trajectory.

In summary, TE Connectivity's acquisition of Richards Manufacturing represents a strategic move to enhance its capabilities in the energy sector, particularly in North America. By integrating Richards' specialized products and expertise, TE Connectivity is well-positioned to address the challenges and opportunities presented by the ongoing modernization of the power grid and the increasing energy demands of emerging technologies.