Eaton to acquire Souriau-Sunbank Connection Technologies for $920 million

by Autocar Pro News Desk , 29 Jul 2019

Image courtesy: Souriau-Sunbank Connection Technologies

Power management company Eaton has announced committed to acquire France-based, Souriau-Sunbank Connection Technologies business of TransDigm Group for $920 million (Rs 6,333 crore), which the company says represents a trailing 12-month EBITDA multiple of approximately 12x.

Eaton says Souriau-Sunbank is a leading player in highly engineered electrical interconnect solutions for harsh environments for customers in the aerospace, defence, industrial, energy, and transport industries. The company was founded over 100 years ago, and has a workforce of approximately 3,200 people and manufacturing facilities in France, the Dominican Republic, India, Morocco, Mexico, and the United States. For the trailing 12-month period ending June 30, 2019, sales of the business were $363 million (Rs 2,499 crore).

Craig Arnold, chairman and CEO, Eaton said: “Souriau-Sunbank is a great fit with our current aerospace portfolio. Souriau-Sunbank’s extensive connectors capabilities will accelerate our participation in the growing market for electrical content on aircraft, and also give us a strong portfolio of connectors for the industrial, energy, and transport markets that we serve today. Adding Souriau-Sunbank is another example of our strategy to bring our broad electrical expertise into new markets, such as our recently created e-Mobility segment targeting electric vehicles.”

Patrice Cavelier-Bros, president, Souriau-Sunbank, said, “We are extremely pleased to become part of Eaton. This combination will better position our businesses and brands to serve our customers and generate growth.”

The acquisition is subject to required consultation processes with works councils, customary closing conditions, regulatory approvals, and TransDigm’s completion of other required steps. The transaction is expected to close by the end-2019 and be accretive to adjusted earnings per share in 2020.

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