HPS Finalizes Acquisition of AEG

GUELPH, Ontario — Hammond Power Solutions Inc. (“HPS” or the “Company”) announced it has completed the previously disclosed acquisition of AEG Power Solutions (“AEGPS”) for approximately CAD $365 million, following receipt of all required regulatory approvals.

The acquisition marks a significant step in HPS’s strategy to expand beyond its transformer-led foundation and strengthens its role across the broader electrical value chain.

“This transaction gives HPS a global platform to accelerate growth in power quality and power conversion solutions and services,” said Adrian Thomas, Chief Executive Officer of Hammond Power Solutions. “It enhances our technology portfolio and expands our service and aftermarket capabilities. By bringing together the two organizations, we are expanding our international reach and strengthening our ability to support customers operating in increasingly performance-critical electrical environments.”

Demand across industrial, infrastructure, transportation, data and energy sectors is shifting toward integrated electrical systems that require solutions spanning power quality, conversion, control and lifecycle support. To meet this demand, HPS is introducing Integrated Electrical Solutions (IES) – a new business unit within HPS focused on delivering more complete, system-level solutions.

Anchored by AEG Power Solutions and supported by complementary elements of HPS’s existing power quality portfolio, IES brings together capabilities across magnetics, power quality, power conversion, critical power, controls and service in a more integrated offering. Building on HPS’s transformer foundation, it strengthens the Company’s ability to support the performance, reliability, and long-term operation of modern electrical systems.

Moving forward, HPS will operate and report through two business units: Transformers and IES.

“For AEG Power Solutions, this is an opportunity to build on our momentum from a position of strength,” said Franck Audrain, Chief Executive Officer of AEG Power Solutions. “Joining HPS gives us greater scale, broader market access and the ability to bring our capabilities to more customers and applications. The AEGPS team looks forward to advancing that next chapter as part of HPS.”

Financing

Concurrent with the closing of the transaction, HPS entered into a new syndicated secured credit facility with J.P. Morgan, National Bank of Canada, and Royal Bank of Canada acting as joint lead arrangers, and with J.P. Morgan acting as sole administrative agent. Under the credit agreement, HPS has access to up to USD $300 million in term debt to fund its acquisition of AEG Power Solutions and up to USD $150 million under a revolving credit facility. The credit agreement will expire in Q3 2030, unless terminated earlier in accordance with its terms. The facility is subject to customary representations, warranties and covenants consistent with financing arrangements of this nature.

“This transaction aligns with our growth-oriented capital allocation strategy,” said Richard Vollering, Chief Financial Officer of Hammond Power Solutions. “It expands the earnings base, improves revenue mix through greater service participation and adds international diversification. We expect it to support long-term value creation as a conduit for growth and as a platform for future acquisitions.”