Eaton Signs Agreement to Acquire Tripp Lite, Expanding Eaton’s Power Quality Business in the Americas
Eaton has announced the acquisition of Tripp Lite for $1.65 billion, enhancing its power quality and connectivity solutions portfolio. This strategic acquisition, valued at approximately 12 times Tripp Lite’s 2020 EBITDA, aims to expand Eaton's edge computing and single-phase UPS business. Tripp Lite, a company with nearly 100 years in the market, offers essential products for various sectors including data centers and medical markets. The deal is anticipated to close by mid-2021, pending customary conditions.
- Acquisition of Tripp Lite for $1.65 billion enhances Eaton's power management portfolio.
- Expected to expand Eaton's edge computing and single-phase UPS business, potentially increasing market share and revenues.
- Tripp Lite's established presence in data centers, industrial, and communications markets aligns with Eaton's strategic goals.
- Acquisition valuation at approximately 12 times 2020 EBITDA may raise concerns about overvaluation.
- Subject to customary closing conditions, which could delay or complicate the acquisition process.
Power management company Eaton (NYSE:ETN) today announced it has signed an agreement to acquire Tripp Lite, a leading supplier of power quality products and connectivity solutions including single-phase uninterruptible power supply systems, rack power distribution units, surge protectors, and enclosures for data centers, industrial, medical, and communications markets in the Americas. Founded nearly 100 years ago, the company is headquartered in Chicago, Illinois. Under the terms of the agreement, Eaton will pay
“The acquisition of Tripp Lite will enhance the breadth of our edge computing and distributed IT product portfolio and expand our single-phase UPS business,” said Uday Yadav, president and chief operating officer, Electrical Sector, Eaton. “We look forward to welcoming Tripp Lite to the Eaton family.”
The acquisition, which is subject to customary closing conditions, is expected to close mid-2021.
Eaton’s 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
This news release contains forward-looking statements about the expected closing of the acquisition of Tripp Lite and estimated Tripp Lite 2021 EBITDA. These statements should be used with caution and are subject to various risks and uncertainties, some of which are outside of the company’s control. Factors that could cause these statements to become untrue include possible delay or failure of the satisfaction of all closing conditions. We do not assume any obligation to update these forward-looking statements.
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