TE Connectivity (TEL) M&A Presentation summary

Strategic rationale and business overview

• Acquisition of Richards Manufacturing aligns with growth strategy in utility, industrial, and renewable sectors.

• Richards is a US provider of utility grid products, excelling in underground applications and serving US utility customers.

• Richards generates ~$400M in revenue with double-digit growth and mid-30% EBITDA margins.

• Acquisition leverages trends in aging infrastructure, grid modernization, and increased load growth.

Financial impact and transaction details

• All-cash purchase price of ~$2.3B, subject to customary post-closing adjustments.

• Expected to be immediately accretive to sales growth and margins, with ~$0.10 adjusted EPS accretion in the first full year.

• Significant tax, revenue, and cost synergies anticipated; mid-teens ROIC expected by year 5.

• Transaction funded through cash on hand and new permanent debt, maintaining balanced capital strategy.

• Closing expected in the third quarter of fiscal year 2025, subject to customary conditions.

Risk factors and forward-looking statements

• Forward-looking statements subject to risks including regulatory approvals, integration challenges, and market conditions.

• Potential risks include business interruptions, competition, currency fluctuations, and changes in tax or regulatory environments.

• No obligation to update forward-looking statements except as required by law.