Hubbell (HUB) To Take Over DMC Power For $825 Million

Hubbell Incorporated (NYSE:HUBB) is one of the best smart city stocks. On August 12, Hubbell announced a definitive cash agreement to acquire DMC Power for $825 million, pending customary adjustments. DMC Power, previously owned by Golden Gate Capital, develops connector solutions for the utility and transmission market.

The acquisition bolsters Hubbell’s position in the utility sector, with demand for substation and transmission equipment rising, led by load growth, data center development, and infrastructure renewal. The company’s $1.34 billion in EBITDA in the last twelve months highlights its operational robustness.

DMC Power maintains manufacturing operations in Carson, California, and Olive Branch, Mississippi, supported by distribution centers in North America. DMC has a workforce of more than 350, and the business is expected to generate around $130 million in revenue and $60 million in EBITDA in 2026.

Hubbell President mentioned DMC Power’s swage connection system fits well with its current substation and transmission products, making its utility business stronger. DMC Power’s CEO, Tony Ward, added that working with Hubbell will speed up the use of swage technology in the industry.

Hubbell plans to pay for the deal using both cash and debt, and expects it will increase adjusted earnings per share by 2026. The deal should close by the end of 2025, depending on regulatory approvals.

Hubbell Incorporated (NYSE:HUBB) is an American producer and seller of electrical and utility products both locally and internationally. It operates through two divisions: Electrical Solutions for wiring, connectors, lighting, and controls, and Utility Solutions for power distribution, transmission, substations, and smart grids.

While we acknowledge the risk and potential of HUBB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HUBB and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: Dow 20 Stocks List: Ranked By Hedge Fund Bullishness Index and 10 Unstoppable Dividend Stocks to Buy Now.

Disclosure. None.