Subsequent Events

9 Months Ended

Sep. 30, 2023

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On October 27, 2023, the Company acquired all of the issued and outstanding membership interests of Indústria Eletromecânica Balestro Ltda. ("Balestro") for a cash purchase price of approximately $89 million. Balestro is a company headquartered in Mogi Mirim, São Paulo, Brazil, and is recognized for designing, manufacturing, and delivering top quality products for the electrical utility industry in Brazil, Latin America, and exports to other parts of the world. This business will be reported in the Utility Solutions segment. This acquisition will be accounted for as a business combination whereby purchase accounting requires the assets and liabilities assumed to be recognized at their fair values as of the acquisition date and goodwill and other intangible assets associated with customer lists and trade names, among others, to be recognized. The preliminary purchase accounting for this acquisition is not yet complete.

On October 28, 2023, the Company entered into a Stock Purchase Agreement (the "Agreement") between Northern Star Parent Holdings, LLC, a Delaware limited liability company, Hubbell Power Systems, Inc., and Hubbell Incorporated, as guarantor, to purchase a manufacturer of substation control and relay panels, as well as turnkey substation control building solutions, by acquiring all the issued and outstanding capital stock of Northern Star Holdings, Inc., a Delaware Corporation (together with its subsidiaries, "Systems Control" and such acquisition, the "Transaction").

Pursuant to the Agreement, the Company agreed to pay an aggregate purchase price of $1.1 billion in cash, subject to customary adjustments related to net indebtedness, working capital and transaction expenses, as set forth in the Agreement.

The closing of the Transaction is subject to certain customary closing conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. The foregoing is qualified by reference to the full text of the Agreement, which is attached as Exhibit 2.1 to our Current Report on Form 8-K, filed on October 30, 2023.