Eaton to acquire Boyd for $9.5bn, expands data center cooling

Eaton has agreed to acquire the thermal solutions unit of Boyd Corporation in a move that brings high-performance liquid cooling into its data‑center and aerospace portfolio. The deal, announced today, is valued at $9.5 billion and positions Eaton to offer integrated power and thermal solutions to hyperscale, colocation and aerospace customers.

Upon transaction close, Boyd’s Engineered Materials business, which delivers advanced technologies that seal, shield, and insulate high performance applications across the industries it serves, will continue to operate as an independent company under the Boyd Corporation brand and continue to be backed by Goldman Sachs Alternatives.

Under the terms of the transaction Eaton will pay a price that the companies say reflects roughly 22.5x Boyd Thermal’s estimated adjusted EBITDA for 2026. Boyd Thermal projects revenue of $1.7 billion in 2026, of which about $1.5 billion is expected to come from liquid‑cooling products and systems—technology widely seen as essential to meet rising rack power densities driven by AI workloads.

The acquisition adds capabilities across design, components and ruggedized systems for thermal management, and brings a manufacturing footprint spanning North America, Asia and Europe with more than 5,000 employees. Eaton said the combination will let it present an end‑to‑end proposition from the processor level through power distribution, enabling customers to manage higher power requirements with fewer integration steps.

“Merging Boyd Thermal’s engineered cooling solutions with Eaton’s global scale and power management platform creates a differentiated offering for modern data centers,” said Paulo Ruiz, Eaton CEO, in a company statement. Boyd Thermal’s CEO, Doug Britt, added that the tie‑up will accelerate innovation and service reach for customers building high‑power facilities for AI and cloud services.

Financially, Eaton expects the acquisition to be accretive to adjusted earnings beginning in the second year after close. The transaction remains subject to regulatory approvals and customary closing conditions and is targeted to complete in Q2 2026. Eaton reported nearly $25 billion of revenue in 2024 and said the buy complements its existing data‑center, aerospace and industrial offerings.

Server liquid‑cooling solutions are gaining traction as chip power densities rise and energy efficiency becomes central to total cost of ownership. Industry estimates project double‑digit annual growth for liquid cooling demand over the coming five years as operators chase higher performance-per-watt and lower facility energy use. For hyperscale operators and colocators, integrated power and thermal stacks can reduce deployment complexity and speed time to service.

Strategically, the deal highlights a broader industry shift toward consolidation along the power‑to‑cooling value chain.