Power management company Eaton has announced that it has signed an agreement to acquire Cobham Mission Systems, a leading manufacturer of air-to-air refuelling systems.
Eaton Corporation plc is an American Irish-domiciled company with corporate headquarters in Dublin, Ireland, and operational headquarters in Beachwood, Ohio.
Eaton will pay $2.83 billion for Cobham Mission Systems (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.”
Eaton say its mission is to improve the quality of life and the environment through the use of power management technologies and services.
“We provide sustainable solutions that help our customers effectively manage electrical, hydraulic, and mechanical power – more safely, more efficiently, and more reliably. Eaton’s 2019 revenues were $21.4 billion, and we sell products to customers in more than 175 countries. We have approximately 92,000 employees.”