Hammond Power Solutions Inc. (HPS) completed its previously announced acquisition of AEG Power Solutions for approximately CAD $365 million. The deal, now cleared of all required regulatory approvals, brings together HPS's transformer and magnetics manufacturing base with AEG's AC/DC power conversion technology—a combination aimed at process industries that depend on uninterrupted, high-reliability power.

A new business unit for integrated power

As part of the deal, HPS is launching a new business unit called Integrated Electrical Solutions (IES), which will operate alongside the company's existing transformers segment. IES will be anchored by AEG's product line and combined with HPS's existing power quality offerings, spanning magnetics, power conversion, controls, critical power and aftermarket service.

For process industries, the practical significance is a broader single-source portfolio. AEG's business centers on AC and DC uninterruptible power supplies, battery chargers, rectifier systems and switch-mode power supplies built to protect critical loads in oil and gas, power generation, nuclear and other continuous-process environments. Pairing that with HPS's transformer and power quality lines gives plant engineers and specifiers a wider set of options from one manufacturer for protecting sensitive process equipment from power disturbances, outages, and conversion losses.

Industrial, energy, and infrastructure operators are increasingly specifying integrated electrical systems rather than sourcing power quality, conversion and control equipment separately. The combined HPS-AEG portfolio positions the company to compete for turnkey power infrastructure projects that previously required coordinating multiple vendors—potentially simplifying procurement, service and lifecycle support for facilities running performance-critical electrical systems, according to a press announcement issued by HPS.

Deal structure

To fund the acquisition, HPS entered a new syndicated secured credit facility with J.P. Morgan, National Bank of Canada and Royal Bank of Canada as joint lead arrangers, with J.P. Morgan serving as sole administrative agent. The agreement provides HPS access to up to USD $300 million in term debt and up to USD $150 million under a revolving credit facility, with the facility set to expire in the third quarter of 2030 absent early termination.

HPS operates manufacturing plants in Canada, the U.S., Mexico and India. AEG Power Solutions, whose roots date back more than a century, maintains offices and technical centers globally.