Power management company Eaton (NYSE: ETN) has agreed to buy air-to-air refueling systems manufacturer Cobham Mission Systems for approximately $2.83 billion, including $130 million in tax benefits.
Eaton said Monday it expects the close the acquisition in the second half of 2021, subject to customary closing conditions.
Cobham Mission Systems also manufactures markets environmental systems, life support, space propulsion, weapons carriage, missile actuation and fuel tank inerting systems for defense markets.
Heath Monesmith, president and chief operating officer for Eaton’s industrial sector, said Cobham Mission Systems’ products and position on growing defense platforms will help Eaton expand its fuel systems and aerospace business.
Eaton said the acquisition price is about 14 times Cobham Mission Systems’ earnings before interest, taxes, depreciation and amortization in 2020 and 13 times its estimated EBITDA this year, excluding the tax benefits.