Eaton (NYSE:ETN) Announces $9.5B Boyd Thermal Acquisition

Eaton Corporation (NYSE:ETN) is poised to expand its thermal management solutions through the acquisition of Boyd Thermal from Goldman Sachs Asset Management, a move expected to bolster its position in the data center and aerospace sectors. The announcement has been met with uncertainty in markets, with the stock down 2% pre-market.

The acquisition, valued at $9.5 billion, positions Eaton to capitalize on the burgeoning demand for thermal management solutions, particularly in liquid cooling. Boyd Thermal, a global business with over 5,000 employees and manufacturing sites across North America, Asia, and Europe, is projected to generate $1.7 billion in sales for 2026, with $1.5 billion stemming from liquid cooling applications. Eaton anticipates the deal, slated to close in the second quarter of 2026, will be accretive to adjusted earnings within two years. The purchase price represents 22.5 times Boyd Thermal's estimated adjusted EBITDA for 2026.

Analyst sentiment surrounding Eaton has been notably positive. Mizuho Securities reiterated a “Buy” rating with a price target of $425, while J.P. Morgan increased its price target to $429. These endorsements underscore confidence in Eaton's strategic direction and the potential for growth following the acquisition.

Price Targets

The acquisition strategically aligns with Eaton's objectives in high-growth sectors. By integrating Boyd Thermal's expertise in liquid cooling and thermal management, Eaton is poised to capture a larger share of the rapidly expanding data center and aerospace markets. The company's ability to leverage Boyd Thermal's global presence and established manufacturing infrastructure further strengthens its competitive advantage.