Hubbell Announces Sale Of Residential Lighting Business To Kingswood Capital Management, LP, For A Cash Purchase Price Of $131M
Portfolio Pulse from Benzinga Newsdesk
Hubbell Incorporated (NYSE:HUBB) has agreed to sell its Residential Lighting business to Kingswood Capital Management, LP, for $131 million in cash. The business is projected to generate about $190 million in sales in 2023. The sale is part of Hubbell's strategy to focus on growth and margin by aligning its portfolio with grid modernization and electrification trends. The deal is subject to regulatory approvals and is expected to close in Q1 2024.
December 21, 2023 | 2:06 pm
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Hubbell's sale of its Residential Lighting business for $131M to Kingswood Capital is a strategic move to focus on higher growth and margin sectors like grid modernization and electrification.
The sale of the Residential Lighting business is a significant strategic move for Hubbell, indicating a sharpened focus on core areas expected to experience growth. This divestiture could be viewed positively by investors as it may improve the company's financials and allow for better allocation of resources towards more profitable segments. The expected sales figure of $190 million for the business being sold suggests that the deal price is reasonable. However, the impact on the stock will depend on investor perception of the company's future growth prospects without this business unit.
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