Eaton to acquire Fibrebond for $1.4 billion

Published 11/03/2025, 11:54
Eaton to acquire Fibrebond for $1.4 billion

DUBLIN - Eaton Corporation (NYSE:ETN), a global power management company with a market capitalization of $109 billion and a prominent position in the Electrical Equipment industry according to InvestingPro, has entered into a definitive agreement to acquire Fibrebond Corporation, a specialist in pre-integrated modular power enclosures. The transaction is valued at $1.4 billion and is anticipated to bolster Eaton’s offerings in the data center and utility sectors.

Fibrebond, headquartered in Minden, Louisiana, is recognized for its engineering expertise and customer-centric approach, particularly within the multi-tenant data center market. The company’s unique value proposition lies in its ability to deliver engineered-to-order power enclosures that streamline the installation and testing process off-site, resulting in cost and time savings for customers.

The acquisition is strategically aligned with Eaton’s focus on expanding its capabilities amidst growing demands for efficient power management solutions. Mike Yelton, president of Eaton’s Americas Region, Electrical Sector, emphasized the importance of the full-service offerings that Fibrebond brings to the table in meeting customer needs more effectively.

Fibrebond’s financial performance is robust, with projected revenues of approximately $378 million for the 12-month period ending February 28, 2025, and an estimated $110 million in adjusted EBITDA for the year 2025. This acquisition adds to Eaton’s already strong financial profile, with the company generating $24.88 billion in revenue and $5.59 billion in EBITDA over the last twelve months. InvestingPro analysis reveals 12+ additional key insights about Eaton’s financial health, which currently rates as GOOD based on comprehensive metrics.

Subject to customary closing conditions, the deal is expected to conclude in the third quarter of 2025. Eaton has indicated that the acquisition should have a neutral impact on its earnings per share for the year 2025.

Founded in 1911, Eaton has a longstanding history of adapting to market shifts and addressing the evolving needs of its stakeholders. With nearly $25 billion in revenues in 2024 and operations spanning over 160 countries, Eaton continues to commit to sustainable practices and innovative power management solutions. The company has maintained dividend payments for 55 consecutive years and raised its dividend for 15 straight years, demonstrating strong shareholder commitment. Detailed analysis of Eaton’s performance metrics and future prospects is available in the comprehensive Pro Research Report on InvestingPro, part of the platform’s coverage of 1,400+ top US stocks.

This move is part of Eaton’s broader strategy to capitalize on the electrification and digitalization trends, aiming to address pressing power management challenges and contribute to a more sustainable future.

The information provided in this article is based on a press release statement from Eaton.

In other recent news, Eaton Corporation reported nearly $25 billion in revenue for 2024, highlighting its substantial global presence and market reach. The company is set to hold an Investor Day in New York City, where CEO-elect Paulo Ruiz will make his first major public appearance. RBC Capital Markets recently adjusted its price target for Eaton shares from $405 to $376, maintaining an Outperform rating, while Bernstein SocGen Group lowered its target to $355 from $385 but also kept an Outperform rating. Oppenheimer maintained a Perform rating on Eaton, noting the company’s robust order growth and backlog data, with Electrical Americas orders up 16% year-over-year.

Eaton’s Electrical Global backlog increased by 16% year-over-year, contributing to a total sector backlog of $11.8 billion. RBC Capital Markets highlighted Eaton’s strong performance in the datacenter segment, with orders increasing by 75% in 2024 and contributing to a seven-year backlog. The firm’s analysts believe Eaton is well-positioned to benefit from the broader Electrical Supercycle, driven by large-scale infrastructure projects in North America. Eaton’s focus on sustainable operations and power management solutions remains a key part of its strategy to address current and future challenges. Furthermore, the company appointed Sergio Letelier as Senior Vice President of Corporate Development, Planning, and Strategy to enhance its portfolio management and growth.

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