Eaton to buy Ultra PCS Limited from Cobham Ultra Group for $1.55 billion

June 16 (Reuters) - Electrical equipment maker Eaton ETN.N said on Monday it had signed an agreement to acquire privately owned engineering solutions company Ultra PCS Limited from Cobham Ultra Group in a deal worth $1.55 billion.

Eaton, which makes electrical components used in data centers, EV charging and hydraulic motors, among others, expects Ultra PCS's strong margins to contribute positively to its aerospace business.

The company had trimmed its full-year profit and segment margins forecast in May.

"Ultra PCS's innovative solutions for safety and mission critical aerospace systems will augment Eaton's portfolio in both military and civilian aircraft," Eaton said.

Cheltenham, UK-based Ultra PCS, which produces electronic controls, sensing and data processing solutions for global aerospace and defense markets, estimates sales of approximately $240 million in 2025.

"Ultra PCS products and aftermarket services with Eaton's will enable us to better serve our customers' needs with tailored, next-generation aerospace solution," said John Sapp, president at Eaton's aerospace group.

The transaction is expected to close in the first half of 2026.

Eaton's shares have fallen more than 2% since the start of the year. It holds a market value of $126.7 billion.

The company counts companies in the aerospace, vehicle, machine building and utility industries among its customers.

It also supplies aerospace fuel, hydraulics and pneumatic systems for commercial and military use and filtration systems for industrial applications.