Electrical distributor EIS to acquire Power Grid Supply

EIS, a distributor of electrical process materials and components in North America, announced the successful acquisition of Power Grid Supply (PGS), a supplier of transformer parts and components for the production, repair, and remanufacturing of transformers.

EIS says this move marks a milestone in its growth and underscores the company’s commitment to providing comprehensive OEM and aftermarket solutions to customers in the transformer and utility markets.

EIS plans to invest in the growth of PGS to expand its geographic reach and further address customer needs across North America, intending to enable customers to extend the lifespans of their electrical equipment while reducing downtime.

The acquisition expands EIS’s product portfolio through the addition of PGS’s supplier relationships for a wide array of transformer parts and components, EIS said.

This addition complements the existing product line, which EIS says results in a comprehensive resource for transformer and power-equipment OEMs and remanufacturers, field service contractors and utilities.

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Demand has surged for grid components in recent years. In December 2022, The American Public Power Association said it was “beyond disappointed” that funding to ramp up production of distribution transformers through the Defense Production Act was not included in a bill to fund the US government, known as the omnibus appropriations bill.

In a survey of APPA’s members, released in October 2022, the average lead time for transformer delivery was 12-18 months, up from a three-month norm that had been the average for years. Some domestic transformer manufacturers were offering bids as long as 3-5 years for transformer delivery.

The industry trade group did its first informal member survey on the topic in November 2021, and responses signaled “serious concern” and not just for transformers.

The survey also identified supply chain constraints among components such as smart meters, bucket trucks, conduits, and bolts, as well as constraints in getting insulators for large transmission lines.

The Texas expansion frees up capacity at the company’s largest Wisconsin manufacturing facility in Waukesha, where Eaton is investing $22 million in equipment to increase manufacturing capacity of three-phase transformers for utility, data center, large commercial and industrial applications.

Eaton will continue to produce regulators, including complex pole and substation voltage regulators, for utility customers in Wisconsin.

Originally published on Power Grid.