The Galway, Ireland-based giant is a major manufacturer of electrical and electronic components, including sensors and connectors for the automotive, aerospace and energy sectors. TE generated $15.8 billion in sales last fiscal year as it adapted to changing grid systems.

Over the years, TE has invested in its energy business with a focus on long-term growth trends, including utility-scale solar, wind and renewable products, as well as grid reliability products like batteries, CEO Terrence Curtin said in a statement.

“The acquisition of Richards Manufacturing aligns with our strategy and positions us to further capitalize on an accelerating grid replacement and upgrade cycle in North America,” Curtin said.

Merger and acquisition activity in the energy and utilities sector is set to rebound in 2025, driven by strong demand for data centers that support artificial intelligence, cloud computing and digital infrastructure, according to a recent global trends and outlook report from PwC. However, with President Donald Trump in office, analysts are expecting a U.S. policy shift that favors fossil fuels, which could slow investments in renewable energy.

As TE looks to capitalize on growing demand for underground electrical networks, competitor Honeywell is also making changes to its operations. The Charlotte-based company said last week it plans to spin off its aerospace and automation businesses. It also is moving forward with selling its personal protective equipment business for $1.3 billion.

TE is pursuing its latest deal with funds managed by Oaktree Capital Management and members of the Bier family, who own the electronics giant. The company is expecting a “mid-teens” return on investment from the Richards acquisition. Richards’ leadership team will continue to lead post-closing, TE said.