Eaton Acquires Tripp Lite For $1.65 Billion To Expand UPS Business - Eaton Corp (NYSE:ETN)

Eaton Corporation PLC (NYSE: ETN) is set to acquire Tripp Lite for a purchase price of $1.65 billion to expand its power quality business in the Americas.
Tripp Lite is a 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.
The purchase price is valued at 12 times Tripp Lite's 2020 EBITDA and 11 times its projected 2021 EBITDA.
"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 Eaton COO Uday Yadav.
The acquisition is expected to close by the mid of 2021.
Price Action: ETN shares closed 0.04% lower at $118.29 on Thursday.