Eaton Corporation to Acquire Boyd Thermal for $9.5 Billion

Eaton Corporation, a global leader in intelligent power management, has announced a definitive agreement to acquire Boyd Corporation's thermal business for $9.5 billion. This strategic move aims to enhance Eaton's capabilities in the data center and aerospace sectors by integrating Boyd Thermal's advanced liquid cooling technologies. The transaction is expected to close in the second quarter of 2026, pending customary regulatory approvals.

Boyd Thermal, a U.S.-based global leader in thermal components and systems, employs over 5,000 individuals across manufacturing sites in North America, Asia, and Europe. The company has forecasted sales of $1.7 billion for 2026, with $1.5 billion attributed to liquid cooling technologies. Eaton's CEO, Paulo Ruiz, emphasized the strategic value of the acquisition, stating, "Bringing together Boyd Thermal’s highly-engineered liquid cooling technology and global service model with Eaton’s existing products and scale will provide enhanced value to customers."

The acquisition aligns with Eaton's broader strategy to expand its data center segment, which is projected to account for 17% of the company's sales by the end of 2025. Earlier this year, Eaton completed the acquisition of Fibrebond Corporation for $1.4 billion, further strengthening its position in the data center market. The company expects the Boyd Thermal acquisition to be accretive to adjusted earnings in the second year following the deal's closure.

The global demand for energy-intensive data centers has surged, driven by the proliferation of AI and digital services. This trend has led to increased investments in power and cooling solutions to support the infrastructure. Eaton's acquisition of Boyd Thermal positions the company to offer integrated power and cooling solutions tailored for hyperscale and colocation data centers. This move also reflects a broader industry trend, with competitors like Vertiv acquiring PurgeRite Intermediate for approximately $1 billion to expand their liquid cooling services portfolio.

Upon completion of the transaction, Boyd's Engineered Materials business will continue to operate independently under the Boyd Corporation brand, backed by Goldman Sachs Alternatives. This segment focuses on technologies that seal, shield, and insulate high-performance applications across various industries.

Eaton's acquisition of Boyd Thermal underscores the company's commitment to enhancing its capabilities in the data center and aerospace sectors. By integrating advanced liquid cooling technologies, Eaton aims to provide comprehensive solutions that address the evolving power demands of modern data centers, positioning itself as a leader in intelligent power management solutions.