Shelton, Conn.-based Hubbell Inc. has entered into a definitive agreement to acquire Northern Star Holdings, Inc. (commercially known as Systems Control), in a move that will enhance Hubbell’s industry-leading Utility Solutions portfolio and align with trends in aging infrastructure, grid automation, renewables and electrification.
Systems Control, a leading manufacturer of substation control and relay panels as well as turnkey substation control building solutions, is a portfolio company of Comvest Partners. The transaction, which will be financed with $1.1 billion in cash, is subject to customary adjustments.
Systems Controls’ highly engineered offerings are mission-critical to grid reliability, enabling utility customers to protect and control substation infrastructure while detecting faults and controlling the flow of electricity. Systems Control estimates 2024 sales of approximately $400 million.
Gerben Bakker, Hubbell’s Chairman, President & CEO, said, “This acquisition enhances Hubbell Utility Solutions’ industry-leading franchise across utility components, communications, and controls. Systems Control has a strong track record of financial performance and is highly complementary to Hubbell’s portfolio, enabling us to deliver additional value to our core utility customers while enhancing our overall growth and margin profile for shareholders.”
Added Greg Gumbs, President of Utility Solutions, “Substation automation is critical to upgrading aged infrastructure and enabling the integration of renewables and electrification on the grid. Systems Control has a proven value proposition, with leading manufacturing quality and engineering expertise driving labor savings for utility customers while enabling them to operate critical infrastructure reliably and efficiently. We are excited to welcome the Systems Control team to Hubbell.”
The transaction is anticipated to close by the end of 2023, subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals. Hubbell plans to finance the transaction with a combination of cash on hand and debt.
Morgan Stanley & Co. LLC is serving as financial advisor to Hubbell, and Wachtell, Lipton, Rosen & Katz is serving as legal advisor. Harris Williams LLC and Lincoln International LLC are serving as financial advisors to Systems Control, and McDermott Will & Emery LLP is serving as legal advisor.