Eaton Signs Agreement to Acquire Boyd Thermal, Expanding Solutions for Data Center Customers to Include Critical Liquid Cooling Technology
- Expands Eaton's existing data center portfolio, offering a global solution to serve hyperscale and colocation customers from the chip to the grid
- Further augments Eaton's aerospace solutions with critical technical capabilities
- Brings proven, differentiated liquid cooling technology for increased power requirements, established customer relationships and global footprint
Intelligent power management company Eaton (NYSE:ETN) today announced it has signed an agreement to acquire the Boyd Thermal business of Boyd Corporation from Goldman Sachs Asset Management. Boyd Thermal is a leader in thermal components, systems and ruggedized solutions for data centers, aerospace and other end markets. Under the terms of the agreement, Eaton will pay $9.5 billion, which represents 22.5 times Boyd Thermal's estimated adjusted EBITDA for 2026*. Boyd Thermal has forecasted sales of $1.7 billion for 2026, of which $1.5 billion is in liquid cooling.
"Bringing together Boyd Thermal's highly-engineered liquid cooling technology and global service model with Eaton's existing products and scale will provide enhanced value to customers," said Paulo Ruiz, Eaton chief executive officer. "In data centers particularly, our combined expertise in both power and liquid cooling from the chip to the grid will enable customers to manage increasing power demands more effectively."
"We are looking forward to joining forces with Eaton. Our decades of expertise in liquid cooling, combined with Eaton's premier positioning in intelligent power management, will deliver innovation in scaling and efficiency to address the high-power demand of AI data centers," said Doug Britt, chief executive officer, Boyd Thermal. "Together, our teams will offer a winning value proposition for our customers."
Boyd Thermal is a global business based in the U.S., with more than 5,000 employees and manufacturing sites across North America, Asia and Europe. With its decades-long history starting as an aerospace thermal management supplier, today Boyd's thermal business serves data center, industrial, aerospace and other markets. Eaton expects Boyd Thermal to be accretive to adjusted earnings in year two after closing.
The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in the second quarter of 2026.
Eaton is an intelligent power management company dedicated to protecting the environment and improving the quality of life for people everywhere. We make products for the data center, utility, industrial, commercial, machine building, residential, aerospace and mobility markets. We are guided by our commitment to do business right, to operate sustainably and to help our customers manage power ─ today and well into the future. By capitalizing on the global growth trends of electrification and digitalization, we're helping to solve the world's most urgent power management challenges and building a more sustainable society for people today and generations to come.
Founded in 1911, Eaton has continuously evolved to meet the changing and expanding needs of our stakeholders. With revenues of nearly $25 billion in 2024, the company serves customers in more than 160 countries. For more information, visit www.eaton.com. Follow us on LinkedIn.
This press release contains forward-looking statements concerning, among other matters, the anticipated acquisition of Boyd Thermal and its impact on Eaton's segment results. These statements are not guarantees of future performance, should be used with caution and are subject to various risks and uncertainties, many of which are outside Eaton's control. The following factors could cause actual results to differ materially from those in the forward-looking statements: risks related to the satisfaction or waiver of the conditions to closing the proposed acquisition in the anticipated timeframe or at all; risks related to the ability to realize the anticipated benefits of the proposed acquisition, including the possibility that the expected benefits from the acquisition will not be realized or will not be realized within the expected time period; significant transaction costs; unknown liabilities; the risk of litigation and/or regulatory actions relating to the proposed acquisition; potential global pandemics, unanticipated changes in the markets for Boyd Thermal's business segments; unanticipated downturns in business relationships with customers or their purchases from Boyd Thermal; supply chain disruptions, competitive pressures on sales and pricing; unanticipated changes in the cost of material, labor and other production costs, or unexpected costs that cannot be recouped in product pricing; the introduction of disruptive or competing technologies; unexpected technical or marketing difficulties; unexpected claims, charges, litigation or dispute resolutions; strikes or other labor unrest at Boyd Thermal or at their customers or suppliers; unanticipated difficulties closing or integrating the acquisition; new laws, tariffs and governmental regulations; interest rate changes; stock market and currency fluctuations; war, geo-political tensions, natural disasters, civil or political unrest or terrorism; and unanticipated deterioration of economic and financial conditions in the United States and around the world. We do not assume any obligation to update these forward-looking statements.
*This press release includes a reference to Boyd Thermal's estimated adjusted EBITDA for 2026. Adjusted EBITDA is a non-GAAP measure. Eaton cannot provide a reconciliation of adjusted EBITDA and the corresponding GAAP measure without unreasonable effort due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251103856036/en/
Jennifer Tolhurst
+1 (440) 523-4006
[email protected]