This article is based on an official press release from Eaton.

Eaton Finalizes $1.55 Billion Acquisitions of Ultra PCS, Bolstering Defense Portfolio

Intelligent power management company Eaton (NYSE: ETN) has officially completed its acquisition of Ultra PCS Limited from the Cobham Ultra Group. The transaction, valued at $1.55 billion, closed on January 23, 2026. This strategic move significantly expands Eaton’s capabilities in the aerospace and defense sectors, adding critical technologies such as missile cooling compressors and aircraft ice protection systems to its industrial portfolio.

According to the company’s announcement, the acquisition aligns with Eaton’s broader strategy to deepen its footprint in high-margin, mission-critical defense markets. Ultra PCS, formerly known as Ultra Precision Control Systems, brings a suite of proprietary technologies that complement Eaton’s existing fuel and motion control offerings. The deal represents Eaton’s largest defense-focused acquisition since 2021.

Deal Structure and Financial Impact

Under the terms of the agreement, Eaton paid $1.55 billion to acquire the UK-based business from the Cobham Ultra Group, which is owned by private equity firm Advent International. Market data indicates that Ultra PCS was projected to generate approximately $240 million in sales for 2025. Based on these figures, the acquisition price reflects a valuation multiple of roughly 6.5 times sales, a premium that analysts attribute to the high barriers to entry in the defense sector and the long-term nature of military contracts.

The integration of Ultra PCS falls under Eaton’s Industrial Sector, specifically within its Aerospace Group. Pete Denk, President of Eaton’s Industrial Sector, emphasized the value of the acquired assets in a statement regarding the deal’s completion.

“Ultra PCS’s innovative solutions for safety and mission critical aerospace systems supplement Eaton’s portfolio for both military and civilian aircraft.”

, Eaton Press Release

Strategic Synergies and Technology

The acquisition is designed to bridge specific gaps in Eaton’s current defense offerings. While Eaton has long been a leader in hydraulic systems, fuel flow, and motion control, often described as the “muscles” of an aircraft, Ultra PCS specializes in the “nerves,” including electronic controls and pneumatic actuation.

Key Product Lines

According to industry reports, Ultra PCS adds several high-value technologies to the Eaton lineup:

• HiPPAG (High-Pressure Pure Air Generator): A critical cooling system for infrared seekers in missiles and pneumatic ejection for munitions. This technology is currently utilized on major platforms such as the F-35 Lightning II and the Eurofighter Typhoon.
• Ice Protection Systems: Advanced electro-thermal systems designed to prevent ice buildup on airframes, including the engine inlets of the F-35 and the wing leading edges of the Boeing 787 Dreamliner.
• Generic Vehicle Architecture (GVA): Open-architecture systems for military land vehicles that facilitate the integration of sensors and communications gear.

Platform Integration

Both companies already hold significant positions on key defense programs. The combination of Eaton’s hydraulic expertise with Ultra PCS’s pneumatic and electronic capabilities is expected to allow Eaton to offer more integrated, comprehensive packages to prime contractors like Lockheed Martin. This is particularly relevant for the F-35 program, where both entities supply essential components.

Market Context and Leadership

This transaction marks a continuation of Eaton’s aggressive expansion into the defense market. It follows the company’s 2021 acquisition of Cobham Mission Systems for $2.8 billion. By acquiring Ultra PCS, Eaton reinforces its pivot toward “smart” defense systems, technologies that combine mechanical engineering with advanced electronic controls.

Leadership changes have also accompanied this transition. Pete Denk, who assumed the role of President and COO of Eaton’s Industrial Sector on January 1, 2025, is overseeing the integration. Denk brings extensive experience from his previous leadership of Eaton’s Vehicle Group and a two-decade tenure at Bosch.

AirPro News Analysis

The completion of this deal highlights a broader trend of consolidation within the aerospace supply chain. As defense budgets rise globally, suppliers are seeking scale to negotiate more effectively with aerospace giants like Boeing and Airbus. Furthermore, the sale of Ultra PCS by Advent International illustrates the ongoing strategy of private equity firms acting as “incubators” that break up large conglomerates, in this case, the Cobham Ultra Group, to sell specialized units to strategic industrial buyers.

From a technological standpoint, this move secures Eaton’s role in the future of air combat. By controlling both the mechanical actuation and the thermal management systems for missiles and aircraft, Eaton is positioning itself not just as a parts supplier, but as a critical systems integrator for next-generation platforms.

Sources

• Eaton/Business Wire