Enhances Eaton's electrification strategy and long-term growth prospects in global aerospace and industrial markets
Power management company Eaton Corporation plc ETN today announced it has committed to acquire the Souriau-Sunbank Connection Technologies business of TransDigm Group Incorporated for $920 million, which represents a trailing 12-month EBITDA multiple of approximately 12x.
Headquartered in Versailles, France, Souriau-Sunbank is a global leader in highly engineered electrical interconnect solutions for harsh environments for customers in the aerospace, defense, industrial, energy, and transport industries. Founded over 100 years ago, the company has a workforce of approximately 3,200 people and manufacturing facilities in France, the Dominican Republic, India, Morocco, Mexico, and the United States. For the trailing 12-month period ending June 30, 2019, sales of the business were $363 million.
"Souriau-Sunbank is a great fit with our current aerospace portfolio," said Craig Arnold, Eaton chairman and chief executive officer. "Souriau-Sunbank's extensive connectors capabilities will accelerate our participation in the growing market for electrical content on aircraft, and also give us a strong portfolio of connectors for the industrial, energy, and transport markets that we serve today.
"Adding Souriau-Sunbank is another example of our strategy to bring our broad electrical expertise into new markets, such as our recently created eMobility segment targeting electric vehicles," Arnold added.
Patrice Cavelier-Bros, president, Souriau-Sunbank, said, "We are extremely pleased to become part of Eaton. This combination will better position our businesses and brands to serve our customers and generate growth."
Completion of the acquisition is subject to the required consultation processes with works councils, customary closing conditions, regulatory approvals, and TransDigm's completion of other required steps. The transaction is expected to close by the end of 2019 and be accretive to adjusted earnings per share in 2020.
Eaton is a power management company with 2018 sales of $21.6 billion. We provide energy efficient solutions that help our customers effectively manage electrical, hydraulic and mechanical power more efficiently, safely and sustainably. Eaton is dedicated to improving the quality of life and the environment through the use of power management technologies and services. Eaton has approximately 100,000 employees and sells products to customers in more than 175 countries. For more information, visit Eaton.com.
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This news release contains forward-looking statements concerning the expected acquisition of Souriau-Sunbank, some of which are outside the company's control. The following factors could cause actual results to differ materially from those in the forward-looking statements: unexpected difficulties obtaining regulatory approvals or satisfying closing conditions, and failure to complete all required steps. We do not assume any obligation to update these forward-looking statements.
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