Eaton Acquires Boyd Thermal for $9.5 Billion to Capitalize on AI Data Center Cooling Demand

Eaton Makes $9.5 Billion Move Into AI Cooling Technology With Boyd Thermal Acquisition - Eaton Corp (NYSE:ETN)

Eaton Corp. (NYSE:ETN) on Monday announced plans to acquire the Boyd Thermal division of Boyd Corporation from Goldman Sachs Asset Management in a $9.5 billion deal to strengthen its data center and aerospace operations. The move underscores Eaton's ambition to offer an integrated "chip-to-grid" solution for hyperscale and colocation customers as global demand for energy-efficient infrastructure surges. The agreement, valued at 22.5 times Boyd Thermal's projected 2026 adjusted EBITDA, will expand Eaton's footprint in thermal management and intelligent power systems. Boyd Thermal anticipates $1.7 billion in sales for 2026, with $1.5 billion attributed to its liquid cooling business. "Combining Boyd Thermal's engineered liquid cooling expertise with Eaton's scale will bring new efficiencies to customers managing rapidly growing power needs," said Eaton CEO Paulo Ruiz. The acquisition complements Eaton's existing data center portfolio, enabling customers to better manage the rising power demands driven by AI and digitalization. Also Read: Vertiv Thrives In AI Era With Strong Backlog, Analyst Says Based in the U.S. with over 5,000 employees and operations spanning North America, Asia, and Europe, Boyd Thermal has evolved from its aerospace roots into a global provider of thermal management systems. The transaction is expected to close in the second quarter of 2026. Eaton expects Boyd Thermal to contribute positively to adjusted earnings by the second year after closing. The company continues to align its business with global trends in electrification and digitalization, which are reshaping intelligent power management. Eaton reported cash and cash equivalents of $398 million as of June 30. Eaton's strategic direction has attracted positive attention from analysts, with one recently initiating coverage on the company with a bullish outlook. The report highlighting Eaton's leadership in smart power technologies can be read here. Price Action: ETN shares are trading 1.21% higher at $376.94 premarket as of last check on Monday. Read Next: Coeur Mining's $7 Billion Deal For New Gold Creates $20 Billion Powerhouse Photo: Shutterstock ETNEaton Corp PLC$378.49-0.80%OverviewGEGE Aerospace$306.50-0.79%HONHoneywell International Inc$197.87-1.72%QQQInvesco QQQ Trust, Series 1$630.190.18%XLISPDR Select Sector Fund - Industrial$153.35-1.10%Market News and Data brought to you by Benzinga APIs

Eaton beefs up data center segment with $9.5 billion Boyd Thermal deal

(Reuters) -Eaton will acquire Boyd Corporation's thermal business from Goldman Sachs Asset Management for $9.5 billion, the fourth deal this year for the power management firm that's seeking to bolster its data center segment to cater to AI demand surge. Boyd Thermal forecast sales of $1.7 billion for 2026, a majority of which is expected to come from its liquid cooling technology used at data centers, Eaton said on Monday. Eaton is one of the several companies benefiting from surging demand for electrical equipment used at data centers, as businesses worldwide expand their infrastructure to support artificial intelligence applications. "Our combined expertise in both power and liquid cooling from the chip to the grid will enable customers to manage increasing power demands more effectively," said Eaton CEO Paulo Ruiz. The company said in August it expects data center and distributed IT equipment to account for the largest share of its sales by the end 2025, at about 17%. Earlier this year, it bought Fibrebond Corporation, which designs and builds pre-integrated modular power enclosures used at data centers, for $1.4 billion. It also acquired Resilient Power Systems, which makes transformers with applications in the EV and the data center industry, for an undisclosed amount. The third company it acquired earlier this year is aerospace systems firm Ultra PCS for $1.55 billion. Eaton said the Boyd acquisition, expected to close in the second quarter of 2026, will boost its adjusted earnings starting in the second year after the deal is completed. Shares of Dublin-based Eaton were down 2% in premarket trading. (Reporting by Aishwarya Jain in Bengaluru; Editing by Shinjini Ganguli)