Hubbell Sells Residential Lighting Business For $131M - CEO Touts Creation Of "Focused Portfolio"
Portfolio Pulse from Nabaparna Bhattacharya
Hubbell Inc (NYSE:HUBB) has agreed to sell its Residential Lighting business to Kingswood Capital Management for $131 million. The sale is part of Hubbell's strategy to focus on a portfolio with better growth and margin prospects, particularly around grid modernization and electrification. The Residential Lighting business is projected to generate about $190 million in sales in 2023. Hubbell's long-term debt was $1.439 billion as of the end of September. The transaction is expected to close in Q1 2024, pending regulatory approvals. Hubbell recently acquired Systems Control, enhancing its energy infrastructure offerings. HUBB shares rose 0.80% to $323.70.
December 21, 2023 | 7:03 pm
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Hubbell Inc is selling its Residential Lighting business for $131 million to streamline its portfolio and focus on growth areas like grid modernization and electrification. The company's shares have responded positively to the news.
The sale of the Residential Lighting business is a strategic move to focus on higher growth and margin areas, which is typically viewed positively by investors. The slight increase in share price reflects market optimism about the company's direction. However, the full impact will depend on the deployment of the proceeds and the success of the company's focus on grid modernization and electrification.
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