TE Connectivity To Buy Richards Manufacturing For $2.3 Bln Cash

(RTTNews) - TE Connectivity plc (TEL), a maker of connectors and sensors, Wednesday said it has agreed to acquire Richards Manufacturing Co., that provides utility grid products, from funds managed by Oaktree Capital Management, L.P. and members of the Bier family for about $2.3 billion in cash.

TE noted that the transaction will complement its product portfolios and help the company to grow in the underground electrical networks market.

On closing the deal, the acquired business will be reported as part of TE's Industrial Solutions segment and is expected to contribute annual sales of about $400 million.

TE expects the deal to add around 10 cents per share to its adjusted earnings.

"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, driven by aging infrastructure, the increased hardening of the network and the upgrades that are required to support the increase in energy demand," said TE Connectivity CEO Terrence Curtin.

The deal is expected to close in TE's fiscal third quarter, ending June 2025.