(Eaton via YouTube)
Eaton Corp. agreed to buy defense and aerospace systems company Ultra Precision Control Systems from private equity firm Advent.
Eaton will pay $1.55 billion for the Cheltenham, England-based business to boost its portfolio in both military and civilian aircraft, it said in a statement Jun 16. The transaction is expected to be accretive given Ultra PCS’s strong growth and high margins, according to the statement.
Shares of Eaton fell 1.3% in pre-market U.S. trading June 16. They have already declined 2.4% this year, giving Eaton a market value of about $126.6 billion. Bloomberg News reported in March that Advent was exploring options for Ultra PCS including a potential sale.
Ultra PCS sells products for military and aerospace markets, including ejection systems that help with dropping missiles. Its portfolio also includes noise and vibration control for aircraft interiors as well as ice-protection gear for fighter jets like the Lockheed Martin Corp. F-35, according to its website. It’s projecting 2025 sales of about $240 million, Eaton said.
“Eaton’s Ultra PCS acquisition looks reasonable to us, even with its high valuation of 6.5 times sales,” Bloomberg Intelligence senior industry analyst Mustafa Okur wrote in a research note June 16. “The product portfolio unlocks new content for existing applications (such as fifth-generation fighter jets) while providing capabilities that can help win additional platforms.”
The deal is expected to close in the first half of 2026, according to the statement. The deal is Eaton’s largest acquisition in the defense space since 2021, when it purchased Cobham Mission Systems from Advent for $2.8 billion.
The announcement comes at the start of the Paris Air Show, an annual gathering of the world’s biggest aerospace and defense companies.
