February 13, 2025 /SemiMedia/ — TE Connectivity announced it will acquire Richards Manufacturing Co., a utility power grid products manufacturer, for approximately $2.3 billion in cash. The acquisition is aimed at bolstering TE’s position in the power utility market and capitalizing on the growing demand for electricity.

As data centers’ reliance on artificial intelligence accelerates, electricity demand is expected to double within five years, rising from 176 TWh in 2023 to an estimated 325–580 TWh by 2028. Aging infrastructure, extreme weather events, and the push for greener energy solutions are driving the need for resilient and upgraded power grid systems.

“Acquiring Richards Manufacturing aligns with our strategy to further capitalize on the accelerating grid replacement and upgrade cycle in North America,” said TE Connectivity CEO Terrence Curtin on Wednesday.

The acquisition will see TE acquire Richards from Oaktree Capital Management, LP and the Bier family-managed funds, which have been long-time owners of the company. The deal is expected to be funded with cash and additional debt, with a closing date anticipated in June.

Following the transaction, Richards Manufacturing will become part of TE’s Industrial Solutions division, with projected annual sales contributions of around $400 million. TE Connectivity expects the acquisition to drive sales growth and adjusted operating margin.