Hubbell Inc HUBB inked a definitive agreement to sell its Residential Lighting business to Kingswood Capital Management for $131 million.
"This transaction reflects our ongoing strategy to create a focused portfolio with attractive growth and margin characteristics," said Gerben Bakker, Chairman, President and Chief Executive Officer.
The business sells indoor and outdoor lighting solutions and is expected to generate approximately $190 million in sales in 2023.
As of September-end, the company's long-term debt stood at $1.439 billion.
"Hubbell's portfolio is strategically aligned around grid modernization and electrification megatrends, and our leading positions across the energy infrastructure will enable us to continue effectively serving utility and electrical customers in front of and behind the meter," Bakker added.
The deal is expected to close in the first quarter of 2024 and is subject to customary closing conditions, including regulatory approvals.
Earlier this month, the company completed the acquisition of Systems Control, a manufacturer of end-to-end substation control solutions.
Price Action: HUBB shares are trading higher by 0.80% to $323.70 on the last check Thursday.
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