en.Wedoany.com Reported - After obtaining all necessary regulatory approvals, Canadian power equipment manufacturer Hammond Power Solutions Inc. (HPS) announced the completion of its acquisition of AEG Power Solutions for approximately CAD 365 million. This acquisition expands HPS from its core transformer business into a broader electrical value chain.
HPS CEO Adrian Thomas stated that this transaction provides HPS with a global platform to accelerate growth in power quality and power conversion solutions and services, while enhancing its technology portfolio and expanding service and aftermarket capabilities. He noted that the merger of the two organizations will expand international reach and strengthen the ability to support customers.
Demand in the industrial, infrastructure, transportation, data, and energy sectors is shifting toward integrated electrical systems that require power quality, conversion, control, and lifecycle support solutions. To this end, HPS has launched a new business unit, Integrated Electrical Solutions (IES), focused on delivering more complete, system-level solutions. This unit is centered on AEG Power Solutions and supported by complementary elements from HPS's existing power quality portfolio, integrating capabilities in magnetics, power quality, power conversion, critical power, control, and services. Building on HPS's transformer foundation, IES can offer more integrated products, enhancing the company's ability to support the performance, reliability, and long-term operation of modern electrical systems.
Going forward, HPS will operate and report through two business units: the Transformer Division and the IES Division. AEG Power Solutions CEO Franck Audrain stated that joining HPS provides the company with greater scale, broader market access, and opportunities to bring its capabilities to more customers and applications.
In terms of financing, HPS has entered into a new syndicated secured credit facility with JPMorgan Chase, National Bank of Canada, and Royal Bank of Canada. Under the agreement, HPS can access up to USD 300 million in term debt for the acquisition and up to USD 150 million in a revolving credit facility. The credit agreement matures in the third quarter of 2030 and is subject to customary representations, warranties, and covenants consistent with such financing arrangements. HPS CFO Richard Vollering stated that this transaction aligns with a growth-oriented capital allocation strategy, expands the earnings base, improves the revenue mix, and increases international diversification. He expects the transaction to serve as a growth channel and a platform for future acquisitions, supporting long-term value creation.
