TE Connectivity Acquires Richards Manufacturing for $2.3B

TE Connectivity has agreed to acquire Richards Manufacturing for $2.3 billion. This acquisition is aimed at enhancing their industrial solutions and is expected to positively impact their earnings with an increase of 10 cents per share.

Date: 12-02-2025

AI Rating: 7

Overview of the Acquisition
TE Connectivity plc has made headlines with its announcement of the acquisition of Richards Manufacturing Co. for approximately $2.3 billion in cash. This strategic move is intended to bolster TE's existing product lines and expand its reach within the underground electrical networks market.

Impact on Earnings Per Share (EPS)
The acquisition is projected to enhance TE's adjusted earnings by approximately 10 cents per share. This increase in EPS can be interpreted as a significant positive signal for investors, indicating potential growth and improved profitability following the integration of Richards Manufacturing.

Revenue Contribution
TE Connectivity anticipates that the acquired business will contribute around $400 million in annual sales, further solidifying its revenue base and supporting its growth strategy. This potential revenue stream signals a strong alignment with TE's operational objectives.

Strategic Alignment
According to TE's CEO, this acquisition fits within the company's strategy to capitalize on the ongoing shift towards upgrading and replacing aging grid infrastructures in North America. This trend is driven by the need to enhance energy demands and could present long-term advantages for TE Connectivity.

Closing Timeline
The transaction is expected to finalize in TE's fiscal third quarter, concluding in June 2025. This timeline gives the company ample opportunity to prepare for integration and ensure that the expected benefits are realized post-acquisition.

Stocks: TEL