Irvington-based Richards Manufacturing Co is being acquired by TE Connectivity, an Ireland-based leader in connectors and sensors for about $2.3 billion in cash, as it looks to strengthen its position in the electrical utilities market to take advantage of a power demand surge.
The Galway, Ireland-based company said it will acquire Richards from funds managed by Oaktree Capital Management, L.P. and members of the Bier family, who were long-standing owners of the business. The deal is expected to be closed in June, through a mixture of cash and additional debt.
Upon deal completion, Richard’s business will become a part of TE’s Industrial Solutions segment and is expected to contribute about $400 million to annual sales.
Richards Manufacturing Co. is a manufacturer of overhead and underground electrical and gas distribution products. The company serves blue-chip utilities and electrical distributors in the United States and internationally.
“One of the key pillars of our strategy is investing in long-term secular growth trends that further our commitments to being a trusted partner to customers around the world and creating value for our owners,” TE Connectivity CEO Terrence Curtin said. “We have been strategically investing in our Energy business over the past several years to be a growth driver for TE. We’ve benefited from our focus on utility scale renewables and grid reliability by providing our customers with innovative products required for the ongoing evolution of the energy grid.
Joe Bier, CEO of Richards Manufacturing, said, “We are thankful for the partnership, strategic support and resources that Oaktree brought to our firm. Together, we have made significant investments in our facility, products, and team to serve our customers. We are thrilled for the next stage of our business as part of TE Connectivity. We have been working in the utilities market for nearly 80 years supporting the design, protection and life of critical infrastructure. We believe TE is a great home for the business our family has built and are excited for a bright future ahead for Richards in TE.”
Goldman Sachs & Co. LLC is serving as TE’s financial advisor and Davis Polk & Wardwell LLP is acting as TE’s legal counsel. Lincoln International is serving as financial advisor, and Kirkland & Ellis LLP as legal counsel, to Richards and Oaktree.
