Connectors and sensors company TE Connectivity plc announced plans to acquire Richards Manufacturing Co in an all-cash transaction valued at approximately $2.3 billion.

TE expects the transaction to boost its position in serving electrical utilities in North America by combining complementary product portfolios and Richards' experience, enabling the company to benefit from growth trends in underground electrical networks.

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Richards is a provider of utility grid products with differentiated positions in both medium voltage cold-shrink cable accessories and network protector products.

"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," TE Connectivity CEO Terrence Curtin said.

According to TE, the transaction will be financed through cash and additional debt. The company expects mid-teens return on invested capital upon completion of tax, revenue and cost synergies. Upon completion of the transaction, the acquired business will be reported as part of TE's Industrial Solutions segment and is expected to contribute annual sales of approximately $400 million and EBITDA margins in the mid-30% range.

The transaction is subject to the receipt of certain regulatory approvals and other customary closing conditions and is expected to close in TE's fiscal third quarter, ending June 2025.

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