Hammond Power Solutions to Acquire AEG Power Solutions
Key Highlights
- HPS will acquire AEG Power Solutions in an all-cash deal valued at around $267 million, subject to regulatory approvals.
- The acquisition will expand HPS’s product offerings to include industrial UPS and power conversion solutions, complementing its existing transformer business.
- The deal aims to increase exposure to high-growth markets such as energy transition, infrastructure and industrial sectors.
Hammond Power Solutions, Guelph, Ontario, a provider of dry-type transformers and power quality solutions, signed a definitive agreement to acquire AEG Power Solutions, subject to regulatory approvals and customary closing conditions.
AEG Power Solutions is a global manufacturer of mission-critical industrial power electronics serving a diverse set of markets, including industrial facilities, transportation, infrastructure and energy applications. Operating primarily across Europe and Asia, AEG Power Solutions employs more than 780 professionals and operates five manufacturing facilities worldwide, with approximately $238 million in 2025 revenue.
Once complete, the proposed acquisition is expected to strengthen HPS’s portfolio by combining HPS’s transformer and power magnetics strengths with AEG Power Solutions’ industrial UPS and power conversion expertise; increasing exposure to high-growth markets including industrials, infrastructure and energy transition applications; and enhancing regional scale. The acquisition is also expected to expand the company’s customer base to include a large installed base and global aftermarket services, increasing recurring revenue from service, maintenance and upgrades.
“This transaction is an important strategic milestone for Hammond Power Solutions,” said Adrian Thomas, CEO of HPS, in the press release. “It strengthens our technology foundation, expands our capabilities in power electronics and integrated electrical solutions and extends our reach across key markets.”
Under the terms of the agreement, HPS will acquire all outstanding equity of AEG Power Solutions in an all-cash transaction with an enterprise value of roughly $267 million. As part of the transaction, HPS will repay AEG Power Solutions’ outstanding bank debt. The transaction is expected to be accretive to adjusted earnings per share in the first full year following closing, with anticipated returns on invested capital exceeding HPS’s cost of capital.