Hammond Power Solutions Expands Global Reach with $365M Acquisition of AEG Power Solutions
Hammond Power Solutions is moving to expand its global footprint and technology portfolio with a planned acquisition of AEG Power Solutions, a manufacturer of industrial power electronics serving energy, infrastructure and transportation markets.
Hammond Power Solutions Inc., a Guelph, Ontario-based supplier of dry-type transformers and power quality products, announced it has signed a definitive agreement to acquire AEG Power Solutions in an all-cash transaction valued at approximately C$365 million, including the assumption and repayment of outstanding bank debt. The deal is subject to regulatory approvals and customary closing conditions and is expected to close in the second quarter of 2026.
AEG Power Solutions, which operates primarily across Europe and Asia, employs more than 780 people and runs five manufacturing facilities worldwide. The company reported approximately C$326 million in revenue in 2025 and focuses on mission-critical power electronics, including industrial uninterruptible power supply (UPS) systems and power conversion technologies used in industrial facilities, transportation systems, infrastructure and energy applications.
Expanding into Power Electronics
For HPS, the transaction represents a step beyond its traditional transformer and magnetics business into a broader suite of integrated electrical solutions.
“This transaction is an important strategic milestone for Hammond Power Solutions,” said Adrian Thomas, chief executive officer of HPS. “It strengthens our technology foundation, expands our capabilities in power electronics and integrated electrical solutions, and extends our reach across key markets. Just as importantly, it brings together two teams grounded in strong values and culture. This transaction reflects the same principles that have guided our long-term capital allocation: strategic relevance, financial discipline, and risk awareness, while maintaining a prudent leverage profile and a clear path to long-term value creation.”
By combining HPS’s transformer portfolio with AEG’s industrial UPS and power conversion expertise, the companies expect to offer more integrated solutions for industrial and energy-transition applications. The acquisition also broadens HPS’s geographic reach, adding scale in Europe and Asia and increasing exposure to infrastructure and industrial markets.
“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 and Outlook
HPS said it intends to finance the acquisition through a new committed syndicated debt arrangement consisting of a term loan and revolving credit facility. The company expects the transaction to be accretive to adjusted earnings per share in the first full year following closing and to generate returns on invested capital above its cost of capital.
“This transaction reflects a disciplined approach to growth. We expect it to enhance our earnings and cash-flow profile while maintaining long-term balance sheet flexibility, supporting a clear path to deleveraging and continued investment in our business,” said Richard Vollering, chief financial officer of HPS.
Upon closing, AEG Power Solutions will operate as a wholly owned subsidiary of HPS, with its leadership team expected to continue managing day-to-day operations.
The deal comes as HPS marks 25 years as a publicly traded company. “I can think of no better way to celebrate that legacy than by taking a meaningful strategic step that builds on what we have created together,” said Bill Hammond, chairman of HPS. “This deal to acquire AEG Power Solutions reflects the strength of our foundation and positions HPS for the next phase of long-term growth.”
J.P. Morgan served as exclusive financial advisor to HPS on the transaction.