LONDON, UK / ACCESSWIRE / December 28, 2017 / Active-Investors.com has just released a free research report on Hubbell Inc. (NYSE: HUBB). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=HUBB as the Company's latest news hit the wire. On December 26, 2017, the Company declared that it has entered into a definitive agreement to acquire Aclara Technologies LLC, an affiliate of Sun Capital Partners, Inc. for approximately $1.1 billion in an all-cash transaction. The acquisition is expected to strengthen and broaden Hubbell Power Systems' competitive position across utility markets. Register today and get access to over 1,000 Free Research Reports by joining our site below:
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Hubbell most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Aclara, A World-Class Supplier of Smart Infrastructure Solutions
Aclara supplies smart infrastructure solutions (SIS) to water, gas, and electric utilities globally. It offers a wide range of solutions such as advanced metering infrastructure, meters and edge devices, software, and installation services. These services help utilities predict and respond to conditions, optimize network performance, leverage their distribution networks effectively and engage with their customers. Moreover, actionable insights help utilities predict, plan and respond to conditions, improve operational efficiency and promote resource conservation to customers.
At present, the Company has over 1,200 people working with more than 800 electric, water, and gas utilities worldwide. And it reported revenues of $500 million and adjusted EBITDA of $90 million for the fiscal year ended September 30, 2017.
Strategic Benefits for Hubbell
Strengthen Hubbell's Leadership Position in Competitive Markets -The acquisition brings together complementary strengths of Aclara and Hubbell Power Systems. The addition of Aclara's software and analytics solutions and its robust communications networks to Hubbell Power Systems' performance-critical components will create a differentiated solution for a broad set of utility customers to meet their next gen needs. Moreover, integration of Aclara's strong customer relationships and smart infrastructure solutions into the Hubbell's innovative portfolio will also accelerate its ongoing innovation efforts to address utility customer demand for data and integrated solutions.
Enhances Hubbell's smart technology and automation capabilities -Aclara's advanced metering solutions and grid monitoring sensor technology, as well as its leading software enabled installation services, will expand Hubbell's presence in utility automation. It will also help the Company offer an end-to-end solution to customers.
Financial Benefits -The transaction is expected to be accretive to Hubbell's diluted EPS, excluding intangible amortization and deal related costs in 2018 and in 2019 on a GAAP basis. Moreover, Hubbell expects to maintain an investment grade rating post the acquisition.
Aclara Expects to Benefit from Joining Hubbell
Allan Connolly, President and CEO of Aclara, expressed his delight on Aclara becoming part of Hubbell, given its vast resources, alliance relationships with major utilities, and shared commitment to quality and innovation. Aclara acknowledged Sun Capital's support towards making it a world-leading provider of end-to-end, smart infrastructure solutions for electric, water, and gas utilities. Now, the Company looks forward to a bright future with Hubbell.
Transaction Financing and Approvals
For the purpose of the transaction, Hubbell has taken fully committed bridge financing from J.P. Morgan Securities LLC, BofA Merrill Lynch, and HSBC Securities (USA). Hubbell anticipates a debt-to-adjusted EBITDA ratio of 3.1x at transaction closing, but it intends to reduce this ratio over the next few years.
The acquisition is subject to the satisfaction of customary closing conditions, including US antitrust clearance. Post which, it is expected to be completed in the first quarter of 2018.
Stock Performance Snapshot
December 27, 2017 - At Wednesday's closing bell, Hubbell's stock dropped 1.18%, ending the trading session at $135.88.
Volume traded for the day: 299.58 thousand shares.
Stock performance in the last month - up 12.03%; previous three-month period - up 17.35%; past twelve-month period - up 14.69%; and year-to-date - up 16.44%
After yesterday's close, Hubbell's market cap was at $7.43 billion.
Price to Earnings (P/E) ratio was at 26.23.
The stock has a dividend yield of 2.27%.
The stock is part of the Technology sector, categorized under the Diversified Electronics industry. This sector was up 0.1% at the end of the session.
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