Hubbell to acquire Aclara Technologies for $1.1B

Hubbell to acquire Aclara Technologies for $1.1B

Hubbell to acquire Aclara Technologies for $1.1B.
Hubbell to acquire Aclara Technologies for $1.1B

Hubbell (HUBB) announced that it has entered into a definitive agreement to acquire Aclara Technologies, an affiliate of Sun Capital Partners for approximately $1.1B in an all- cash transaction.

Hubbell Incorporated designs, manufactures, and sells electrical and electronic products in the United States and internationally.

The transaction strengthens and broadens Hubbell Power Systems’ competitive position across utility markets.

The acquisition will combine the complementary strengths of Aclara and Hubbell Power Systems, providing the opportunity to integrate Aclara’s strong customer relationships and smart infrastructure solutions into the Hubbell portfolio and accelerate ongoing innovation efforts to address utility customer demand for data and integrated solutions.

Aclara offers a comprehensive suite of solutions, including advanced metering infrastructure, meters and edge devices, software, and installation services.

Aclara reported revenues of $500M and adjusted EBITDA of $90M for the fiscal year ended September 30, 2017.

The transaction is expected to be accretive in 2018 to Hubbell’s diluted EPS, excluding intangible amortization and deal related costs, and in 2019 on a GAAP basis.

Further, Hubbell expects to maintain an investment grade rating. Hubbell has obtained fully committed bridge financing from J.P. Morgan Securities, BofA Merrill Lynch, and HSBC Securities.

Hubbell expects its debt-to-adjusted EBITD ratio to be 3.1x at the close of the transaction, and anticipates reducing this ratio over the next few years.

The transaction, which is expected to be completed in 1Q18, is subject to the satisfaction of customary closing conditions, including U.S. antitrust clearance.

HUBB closed at $135.23.


To read timely stories similar to this, along with money making trade ideas, sign up for a membership to Stockwinners

This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.

Leave a Reply

Your email address will not be published. Required fields are marked *