Eaton Corp. has agreed to purchase Boyd Thermal, a business unit of Boyd Corporation, for $9.5 billion in cash and stock. The transaction values Boyd Thermal at 22.5 times its estimated adjusted EBITDA for 2026 and is expected to close in the second quarter of 2026.
The acquisition adds Boyd Thermal’s liquid‑cooling technology to Eaton’s existing power‑distribution and modular‑power product lines, positioning the company to serve the growing demand for high‑density, energy‑efficient data‑center cooling. Boyd Thermal’s forecasted 2026 sales are $1.7 billion, of which $1.5 billion will come from liquid‑cooling products, underscoring the strategic fit.
Eaton’s 2023 revenue was $10.5 billion and its adjusted earnings per share were $1.45, demonstrating the financial strength that underpins the $9.5 billion purchase. The deal will be financed with a combination of cash and a 10‑share‑per‑share stock swap, and Eaton’s debt‑to‑equity ratio will remain below 1.5 after the transaction.
The company expects to achieve cost synergies through integration of manufacturing, supply‑chain, and sales functions, and to generate cross‑selling opportunities that will accelerate revenue growth in both the data‑center and utility markets. Eaton’s credit rating is projected to remain unchanged.
Boyd Thermal operates more than 5,000 employees across North America, Asia, and Europe and has a global footprint that complements Eaton’s worldwide distribution network. The sale follows Boyd Corporation’s restructuring, which will spin off its Engineered Materials business as an independent company backed by Goldman Sachs.
The data‑center cooling market is projected to reach $56.15 billion by 2030 at a CAGR of 16.4%, driven by AI workloads and high‑density computing. Liquid cooling is becoming essential to manage the heat generated by these workloads, and the acquisition places Eaton in a stronger position relative to competitors such as Vertiv, which has recently expanded its own liquid‑cooling portfolio.
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