Benzinga | Jan 29, 2021 09:30AM EST

Eaton Acquires Tripp Lite For $1.65 Billion To Expand UPS Business

* 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.