en.Wedoany.com Reported - Wesco International (NYSE: WCC) announced it has signed a definitive agreement to acquire all equity of Newark Engineering Group, a Singapore-based provider of engineering cooling solutions and lifecycle services for data centers, for a cash-free, debt-free purchase price of S$175 million (approximately US$136 million). The acquisition will expand Wesco's capabilities in data center cooling and lifecycle services, strengthening its presence in the rapidly growing Southeast Asian market.
Newark Engineering Group specializes in the design, supply, installation, commissioning, and maintenance of advanced thermal management systems, providing integrated solutions covering the full lifecycle of data centers for clients in Southeast Asia, including Singapore, Malaysia, and Indonesia. According to disclosures, Newark generated approximately US$60 million in revenue in 2025, with an EBITDA margin accretive to Wesco's portfolio, and the acquisition multiple is below Wesco's current trading multiple.
John Engel, Chairman, President, and CEO of Wesco, stated: "Newark provides integrated turnkey cooling solutions, with strong partnerships and a first-class customer base, including global technology companies and Fortune 500 enterprises." He noted that the acquisition expands Wesco's participation in the data center value chain, particularly in engineering cooling and lifecycle services, and provides a robust growth platform in Southeast Asia. Engel also mentioned that this service-led business has attractive margins and is expected to achieve above-market growth by leveraging Wesco's global customer relationships and expanding the solutions portfolio. He anticipates that the acquisition will enhance the company's growth profile, support margin expansion, and generate substantial returns within the first year.
Fanny Lee, Managing Director of Newark Engineering Group, said: "Partnering with Wesco will accelerate our growth and expand our ability to serve data center customers in Southeast Asia. Wesco's global platform and complementary capabilities will enable us to broaden our solutions portfolio, reach new customers, and scale our business." Through this merger, Wesco plans to combine Newark's existing regional customer relationships with its own global customer coverage, expanding service to hyperscale, enterprise, and colocation data center clients, while cross-selling electrical, communications, and supply chain solutions into Newark's installed base to increase wallet share.
The transaction is expected to close in the third quarter of 2026, subject to customary regulatory approvals and closing conditions.
Newark Engineering Group, headquartered in Singapore with offices in Malaysia and Indonesia, provides integrated custom HVAC solutions for data centers and other critical infrastructure, covering design support, equipment supply, installation, commissioning, and lifecycle services.
Wesco International (NYSE: WCC), headquartered in Pittsburgh, Pennsylvania, is a Fortune 500 company with annual sales of approximately US$24 billion in 2025, primarily providing business-to-business distribution, logistics services, and supply chain solutions to customers in commercial, industrial, data center, and infrastructure markets.
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