Adds Hubbell CEO comment in paragraph 2, background and details on transaction throughout

May 4 (Reuters) - Electrical equipment maker Hubbell HUBB.N said on Monday it had agreed to acquire peer NSI Industries, a portfolio company of Sentinel Capital Partners, for $3 billion in cash.

The deal comes as surging AI-driven data center construction and stepped-up utility spending on grid modernization and aging infrastructure lift demand for electrical components.

"As electrification megatrends drive attractive growth across the electrical industry over the next several years, NSI offers highly complementary products," Hubbell CEO Gerben Bakker said in a statement.

Last week, Hubbell beat estimates for first-quarter results and raised its 2026 profit forecast betting on strong demand for its products that are used in data centers and energy projects.

Huntersville, North Carolina-based NSI Industries is a supplier of electrical fittings, connectors, components and wire management products. It anticipates 2026 revenue of about $570 million.

Hubbell said it plans to finance the deal, which is expected to close in mid-2026, with cash on hand and debt and has obtained fully committed bridge financing from JPMorgan Chase Bank JPM.N, Bank of America BAC.N and HSBC Bank USA HSBA.L.

For the transaction, Harris Williams is Hubbell's financial adviser, while Lincoln International is serving as financial adviser to NSI Industries and Sentinel Capital Partners.