The acquisition marks a strategic expansion for Hammond Power Solutions into the European and Asian power electronics markets, diversifying its business beyond North American transformers.
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Hammond Power Solutions to Buy AEG for C$365 Million in Global Push
The acquisition marks a strategic expansion for Hammond Power Solutions into the European and Asian power electronics markets, diversifying its business beyond North American transformers.
Hammond Power Solutions Inc. will acquire AEG Power Solutions for approximately C$365 million, a move that expands the Canadian transformer maker’s reach into Europe and Asia and adds a portfolio of industrial power electronics.
"This transaction is an important strategic milestone for Hammond Power Solutions," said Adrian Thomas, chief executive officer of HPS, noting that it "strengthens our technology foundation, expands our capabilities in power electronics and integrated electrical solutions, and extends our reach across key markets."
The all-cash deal includes the assumption of outstanding debt and is expected to close in the second quarter of 2026, pending regulatory approvals. AEG, with C$326 million in 2025 revenue, will operate as a wholly owned subsidiary.
The acquisition positions HPS to compete in the growing market for energy transition applications by combining its transformer expertise with AEG's industrial uninterruptible power supply (UPS) and power conversion technologies. The deal is expected to be accretive to adjusted earnings per share in the first full year.
Expanding Horizons
For HPS, a Guelph, Ontario-based supplier of dry-type transformers, the deal represents a significant step beyond its core business. The acquisition of AEG Power Solutions, which operates primarily in Europe and Asia, provides HPS with an established presence in new geographic markets and a broader suite of technologies. AEG’s expertise in industrial UPS systems and power conversion is seen as complementary to HPS’s transformer business, enabling the combined entity to offer more integrated solutions for industrial and energy-transition applications.
"The combination of HPS and AEG Power Solutions will allow our teams to collaborate more closely, extend our global reach, and continue supporting customers with the same focus on reliability and service that they value and depend on," said Franck Audrain, chief executive officer of AEG Power Solutions.
Financial Structure
HPS plans to finance the C$365 million acquisition through a new syndicated debt arrangement, including a term loan and a revolving credit facility. The company's CFO, Richard Vollering, emphasized a "disciplined approach to growth," stating that the transaction is expected to "enhance our earnings and cash-flow profile while maintaining long-term balance sheet flexibility." J.P. Morgan served as the exclusive financial advisor to HPS on the deal.
This article is for informational purposes only and does not constitute investment advice.
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