The Ireland based power management company Eaton has announced it would acquire Tripp Lite for $1.65 billion. Tripp Lite is a provider of power quality products and connectivity solutions based in Chicago, Illinois.
The $1.65 billion purchase price is roughly 12x 2020 EBITDA and 11x 2021 EBITDA. The deal is intended to “enhance the breadth of [Eaton’s] edge computing and distributed IT product portfolio and expand [its] single-phase UPS business.”
While the acquisition is by no means small, it likely won’t move the needle much in the near term for Eaton due to the relatively small size of the deal when compared to its $21.4 billion in annual sales. Despite this, shares did react positively to the initial announcement, but traded down throughout the day as the broader markets suffered.