Power management company Eaton said on Tuesday it will buy Fibrebond Corporation in a $1.4 billion deal as it looks to expand its reach into the data center market.
The global appetite for energy-intensive data centers has increased exponentially as companies race to develop and adopt artificial intelligence, benefiting electrical equipment makers like Eaton.
Last year, Eaton expanded its data center supply network, to Europe by investing an undisclosed amount into NordicEPOD, a company that commissions electrical power pods for data centers.
Minden, Louisiana-based Fibrebond designs and builds equipment used by data centers, industrials, utility and communications companies.
It is expected to post a 2025 adjusted core profit of $110 million, Eaton said.
Eaton added Fibrebond’s power enclosures, which allow for off-site equipment installation and testing, help customers become operational in less time and at a lower cost.
The transaction is expected to close in the third quarter of 2025. Eaton said it expects the deal to be neutral from an earnings-per-share standpoint in 2025.
Source: Reuters.com