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Hammond Power Solutions Inc., a Canadian manufacturer of dry-type transformers and power quality solutions, announced a definitive agreement to acquire AEG Power Solutions, a global provider of industrial power electronics, pending regulatory approvals. The all-cash transaction carries an enterprise value of US$267 million (C$365 million) and includes repayment of AEG Power Solutions’ existing bank debt.

AEG Power Solutions operates five manufacturing facilities across Europe and Asia, employing over 780 professionals, with approximately C$326 million in revenue in 2025. The acquisition aims to strengthen HPS’s product portfolio, expand its reach into high-growth markets such as industrials, infrastructure, and energy transition applications, and enhance its global presence.

Adrian Thomas, CEO of HPS, said the acquisition “strengthens our technology foundation, expands our capabilities in power electronics and integrated electrical solutions, and extends our reach across key markets.” Franck Audrain, CEO of AEG Power Solutions, added that the combination will allow closer collaboration and extended global reach while maintaining reliability and service for customers.

The acquisition is expected to be accretive to adjusted earnings per share in the first full year after closing, with anticipated returns on invested capital exceeding HPS’s cost of capital. The transaction is expected to close in the second quarter of 2026, after regulatory approval, and AEG Power Solutions will operate as a wholly owned subsidiary with its existing leadership team continuing daily operations.

HPS intends to fund the acquisition through a new syndicated debt arrangement, consisting of a term loan and revolving credit facility. J.P. Morgan acted as exclusive financial advisor to HPS.

Source: globenewswire.com