Hammond Power Solutions Inc. to Acquire AEG Power Solutions
February 23, 2026
Hammond Power Solutions Inc. (“HPS”; TSX: HPS.A), a leading provider of dry-type transformers and power quality solutions, announced that it has signed a definitive agreement to acquire AEG Power Solutions, subject to regulatory approvals and customary closing conditions on February 17, 2026. AEG Power Solutions is a leading global manufacturer of mission critical industrial power electronics serving a diverse set of markets, including industrial facilities, transportation, infrastructure, and energy applications. Operating primarily across Europe and Asia, AEG Power Solutions employs more than 780 professionals and operates five manufacturing facilities worldwide, with approximately C$326 million in revenue in 2025.
Strategic Rationale
Once complete, the proposed acquisition is expected to strengthen HPS’s portfolio, market reach, and long-term growth profile through:
Product expansion – Integrated electrical solutions combining HPS’s transformer and power magnetics strengths with AEG Power Solutions’ industrial UPS and power conversion expertise.
End-market expansion – Increased exposure to high-growth markets including industrials, infrastructure, and energy transition applications.
Geographic expansion – Superior scale and global platform, supporting long-term diversified growth across multiple regions.
Customer base expansion – Large installed base and global aftermarket services, increasing recurring revenue from service, maintenance, and upgrades.
“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.”
“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.
“In 2026, Hammond Power Solutions marks 25 years as a publicly traded company,” said Bill Hammond, Chairman of HPS. “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. This deal to acquire AEG Power Solutions reflects the strength of our foundation and positions HPS for the next phase of long-term growth.”
Transaction Details
Under the terms of the agreement, HPS will acquire all outstanding equity of AEG Power Solutions in an all-cash transaction with an enterprise value of C$365 million. As part of the transaction, HPS will repay AEG Power Solutions’ outstanding bank debt. The transaction is expected to be accretive to adjusted earnings per share in the first full year following closing, with anticipated returns on invested capital exceeding HPS’s 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.
The transaction is subject to regulatory approvals and other customary conditions and is expected to close in the second quarter of 2026. HPS intends to fund the transaction through a new committed syndicated debt arrangement, consisting of a term loan and a revolving debt facility.
Upon completion, AEG Power Solutions will operate as a wholly owned subsidiary of HPS, with its leadership team expected to continue overseeing day-to-day operations.
J.P. Morgan acted as exclusive financial advisor to HPS in connection with this transaction.
Conference call and Webcast Information:
HPS held a conference call and webcast on Tuesday, February 17, 2026, at 9:00 a.m. Eastern Time. This call can be accessed by registration through participant links:
Date/Time: February 17, 2026 at 9 a.m. ETLive Call Participant Registration Link:
https://register-conf.media-server.com/register/BI2f72ca310e18499f833c1991a12856a0
Audio-Only Webcast: https://edge.media-server.com/mmc/p/s8hwe5sz
A webcast replay will be available for 12 months.
More Information
Download the full press release here
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