Shelton-headquartered manufacturer Hubbell Inc. announced Monday it has entered into an agreement to acquire Northern Star Holdings Inc., which is known commercially as Systems Control, for $1.1 billion.
Systems Control, a Michigan-based manufacturer of substation control and relay panels, anticipates 2024 sales of approximately $400 million and is a portfolio company of Comvest Partners.
Hubbell indicated it anticipates the acquisition will enhance its utility portfolio. System Control’s products help utility customers protect and control substation infrastructure, detect faults, and control the flow of electricity.
The deal is expected to be finalized by the end of 2023, pending conditions such as required regulatory approvals. Hubbell indicated it plans to finance the transaction with a combination of cash on hand and debt.
Gerben Bakker, chairman, president and CEO of Hubbell, said Systems Control has a strong track record of financial performance and is “highly complementary” to Hubbell’s existing portfolio.
Hubbell, which manufactures various utility and electrical products, such as cables, connectors and grounding equipment, reported 2022 revenues of $4.9 billion.
On Tuesday, Hubbell indicated it anticipates full year 2023 total sales growth of approximately 8% compared to 2022.
