Key Takeaways:
Hubbell Incorporated completed its $3 billion acquisition of NSI Industries on Tuesday, adding more than 15,000 electrical products to its portfolio in a deal financed with $2.8 billion in new debt.
"NSI is a category-leading provider of branded electrical components with a strong track record of consistent sales growth," said Mike Pruss, chief executive officer of NSI Industries. "We are excited about the growth opportunities for our business and team as part of Hubbell."
Hubbell funded the transaction with $1.9 billion in senior notes across three tranches — $500 million of 4.650% notes due 2031, $700 million of 4.900% notes due 2033 and $700 million of 5.150% notes due 2036 — plus a $900 million unsecured term loan facility and commercial paper issuances. The notes generated net proceeds of about $1.87 billion after underwriting discounts and expenses, according to an 8-K filing with the Securities and Exchange Commission.
The acquisition marks the exit of Sentinel Capital Partners, which bought NSI in November 2024 and refocused the company as a pure-play electrical components manufacturer by selling its HVAC division to Lennox International for $550 million in October 2025. NSI supplies electrical fittings, connectors and wire management products under brands including Bridgeport, Polaris and Tork through more than 2,000 distributors across North America. Hubbell, which reported $5.8 billion in revenue in 2025, gains access to NSI's distribution network and exposure to industrial, infrastructure and commercial end markets, including data centers and power utilities.
J.P. Morgan Securities, BofA Securities and HSBC Securities acted as joint book-running managers for the notes offering. Lincoln International and Baird served as financial advisers to Sentinel, with Kirkland & Ellis providing legal counsel.
The notes carry a special mandatory redemption clause requiring Hubbell to repurchase them at 101% of principal plus accrued interest if the NSI deal had not closed by an agreed outside date. Holders also have a 101% cash put right upon a change in control triggering event, according to the indenture terms.
This article is for informational purposes only and does not constitute investment advice.
