DUBLIN, Ireland — Power management company Eaton announced it has signed agreements to acquire Tripp Lite and Cobham Mission Systems, expanding Eaton’s power quality business in the Americas and Eaton Aerospace’s fuel and environmental systems offerings, respectively.
Tripp Lite is a leading supplier of power quality products and connectivity solutions including single-phase uninterruptible power supply systems, rack power distribution units, surge protectors, and enclosures for data centers, industrial, medical, and communications markets in the Americas. Founded nearly 100 years ago, the company is headquartered in Chicago, Illinois. Under the terms of the agreement, Eaton will pay $1.65 billion for Tripp Lite, which represents approximately 12 times Tripp Lite’s 2020 EBITDA and 11 times estimated 2021 EBITDA.
“The acquisition of Tripp Lite will enhance the breadth of our edge computing and distributed IT product portfolio and expand our single-phase UPS business,” said Uday Yadav, president and chief operating officer, Electrical Sector, Eaton. “We look forward to welcoming Tripp Lite to the Eaton family.”
The acquisition, which is subject to customary closing conditions, is expected to close mid-2021.
Eaton also announced it has signed an agreement to acquire Cobham Mission Systems (“CMS”), a leading manufacturer of air-to-air refueling systems, environmental systems, and actuation primarily for defense markets. Under the terms of the agreement, Eaton will pay $2.83 billion for CMS, inclusive of $130 million in tax benefits. Excluding the amount paid for tax benefits, the purchase price represents approximately 14 times CMS’s 2020 EBITDA and 13 times its estimated 2021 EBITDA.
“Cobham Mission Systems’ highly complementary products and strong position on growing defense platforms will enhance our fuel systems business and position our Aerospace business for future growth,” said Heath Monesmith, president and chief operating officer, Industrial Sector, Eaton. “We look forward to welcoming CMS to Eaton.”
The acquisition, which is subject to customary closing conditions, is expected to close in the second half of 2021.
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