Eaton Corporation plc completed its acquisition of Ultra PCS Limited on January 23, 2026, paying $1.55 billion in a combination of cash and stock. Ultra PCS, a UK‑based supplier of electronic controls and sensing products for aerospace and defense customers, brings a portfolio of safety‑critical solutions that complement Eaton’s existing aerospace and defense offerings.
The deal expands Eaton’s reach into high‑margin, mission‑critical markets and strengthens its position in both defense and commercial aircraft segments. By adding Ultra PCS’s technology, Eaton can offer a broader range of mission‑systems solutions and deepen its relationships with key aerospace customers.
Eaton expects the acquisition to be accretive to its Aerospace segment. Ultra PCS is projected to generate roughly $240 million in sales in 2025, with an EBITDA margin of 25 %. The high margin and strong sales forecast mean the combined entity will see an uplift in profitability and new cross‑sell opportunities across Eaton’s power and control product lines.
Pete Denk, president and chief operating officer of Eaton’s Industrial Sector, said the addition of Ultra PCS “enhances our mission‑systems offerings and strengthens our ability to support customers with the next generation of aerospace solutions.” John Sapp, president of Eaton’s Aerospace Group, added that combining technologies and aftermarket services will allow for more targeted solutions and greater value for customers.
The acquisition follows Eaton’s broader strategy of electrification, digitalization, and sustainable growth. The company’s Q3 2025 results showed record sales and operating profits, and management has maintained a positive outlook for 2025, citing organic sales growth and adjusted EPS growth. Adding Ultra PCS aligns with Eaton’s focus on high‑growth areas and positions the company to capture momentum in the defense and commercial aircraft markets.
Analysts have viewed the deal as reasonable, noting a valuation of 6.5 times sales. The transaction also fits into Eaton’s recent acquisition pattern, which includes the $1.4 billion purchase of Fibrebond Corporation in March 2025 and the earlier $2.8 billion acquisition of Cobham Mission Systems in 2021. Together, these moves reinforce Eaton’s commitment to expanding its aerospace and defense capabilities and to delivering high‑margin, mission‑critical solutions to a growing customer base.
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