Power management company Eaton Corporation has announced the purchase of Cobham’s air-to-air refuelling arm for £2bn ($2.8bn).
The deal, which is set to strengthen Eaton’s aerospace business, values Cobham Mission Systems (CMS) at around 14 times its 2020 earnings.
Cobham was bought by US private equity firm Advent last year and the firm has been split into nine divisions which include Cobham Mission Systems. Opponents of the £4bn sale to Advent, included Lady Nadine Cobham, widow of the company’s former chief executive Sir Michael Cobham. She predicted that the fund had bought the company in order to sell it off division by division.
Deal will enhance Eaton’s fuel systems business
Eaton has its corporate headquarters in Dublin and operational headquarters in Beachwood, Ohio. The company manufactures explosion-proof instrumentation, pumps, motors and hydraulic power units. The deal is expected to close in the second half of the year.
Heath Monesmith, president and chief operating officer, Industrial Sector, Eaton said: “Cobham Mission Systems’ highly complementary products and strong position on growing defence platforms will enhance our fuel systems business and position our Aerospace business for future growth. We look forward to welcoming CMS to Eaton.”
Eaton provides power management technologies and services which help customers manage electrical, hydraulic, and mechanical power. The company has around 92,000 employees and sells products to more than 175 countries. Revenues were $21.4 billion in 2019.