Latest news with #UltraPCS
CNBC
15 hours ago
- Business
- CNBC
Eaton makes a move outside of the data center — plus, what's new with Abbott Labs
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets: Stocks were higher in afternoon trading Monday, with the S & P 500 adding nearly 1% and the tech-heavy Nasdaq Composite advancing around 1.5%. The action across Wall Street — and not just in stocks, but also in areas like gold and oil — suggest the market is betting that the Israel-Iran attacks will not lead to a broader conflict in the Middle East. As we highlighted in a story earlier Monday , investors view geopolitical events through the lens of, "What does this mean for global economic growth?" On Monday, at least, the belief is that growth will not be derailed by the attacks. Defense deal: Club holding Eaton is making a move outside of its high-profile data center business. On Monday, the electrical equipment company announced a $1.55 billion acquisition of aerospace and defense firm Ultra Precision Control Systems, expanding Eaton's presence in two fast-growing end markets amid rising global defense spending driven by geopolitical uncertainty and conflict overseas. Ultra PCS makes products like ejection systems that help drop missiles, along with noise and vibration control for aircraft interiors. The deal is expected to be accretive to Eaton, given Ultra PCS's "strong growth position on high-margin business," according to the Monday announcement. Ultra PCS is projected to generate sales of roughly $240 million in 2025, which would be equal to nearly 6% of Eaton's expected aerospace revenues of $4.08 billion. In the company's first quarter, aerospace was about 15% of sales. The acquisition, while small, speaks to a key concern Jim Cramer now has with Eaton's stock: its close linkages to the AI data center trade. With the way our own stock portfolio has evolved, Jim worries that shares of Eaton are too closely tied with the spending patterns of hyperscalers like Amazon and Microsoft. Even if the "data center and distributed IT" end market is only expected to contribute 17% of Eaton's total sales this year, it can sometimes feel like that's the only thing that moves the stock. And now that we have other AI industrial names like Dover and GE Vernova in the portfolio, Jim has even speculated if the Club should exit Eaton all together. "I am concerned and think that we might have to take one of these off out of that concern," he said of Eaton and Dover during the May Monthly Meeting . "I like the data center [story] but I do not want to be the data center fund." Therefore, adding Ultra PCS to the fold at Eaton should help boost its budding aerospace business and, hopefully, broaden the way Wall Street views the stock. Jim has described the aerospace division as "a very solid business that is really coming on." Shares of Eaton are up more than 4%, outperforming the rebounding market. A few other stocks in the AI data center trade such as Vertiv also are having a strong day. Abbott roundup: There are a few headlines involving Club name Abbott Laboratories on our radar Monday, including an initiation over at Leerink Partners. Analysts began coverage of the medical devices company with a hold-equivalent rating and target price of $143, implying less than 6% upside from where the stock closed Friday. While noting Abbott's strong position in the industry, Leerink analysts said they believe "potential upside growth drivers and strong execution" is largely baked into the company's "stock at current peak valuation levels," without any compelling near-term catalysts. We do have a hold-equivalent 2 rating on the name, as well, so it's difficult to push back on claims of a full valuation. Better news for Abbott came out of Canada, where the company got government approval of a rapid blood test to help clinicians assess suspected concussions. While we're not sure this is a major needle-mover right now, it is an interesting product with use cases that include sporting events. For example, the motorcycle road racing series MotoAmerica will have the test on hand at all of its races this year . Lastly, we came across a story in The New York Times from late last week that took a closer look at claims around baby formula. Earlier this month, Health Secretary Robert F. Kennedy Jr. ordered the Food and Drug Administration to review infant formula ingredients, the first such review in decades. Abbott, the maker of Similac baby formulas, has faced lawsuits related to its specialized formula business, though the company defends the safety of its product. Separately, Abbott also had issues with a manufacturing plant in 2022 . Shares of Abbott Labs have been one of the best-performing stocks in our portfolio this year, though the stock hasn't done much since early March. Up next: Homebuilder Lennar is set to report earnings after the closing bell Monday, and we'll be listening to commentary on the conference call around overall housing market activity, which carries implications for Club name Home Depot. Before Tuesday's opening bell, we'll hear from Jabil, which makes electronic components and is a supplier to Club holding Apple . Also out Tuesday morning is a handful of notable economic reports. We'll get retail sales for May; the latest import/export prices index; and the Federal Reserve's industrial production and capacity utilization report. Combined, all three releases will shed light on the health of the U.S. economy ahead of the Fed's interest rate decision on Wednesday afternoon. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Associated Press
a day ago
- Business
- Associated Press
Eaton signs agreement to acquire Ultra PCS Limited to strengthen position in fast-growing aerospace markets
DUBLIN--(BUSINESS WIRE)--Jun 16, 2025-- Intelligent power management company Eaton (NYSE:ETN) today announced it has signed an agreement to acquire Ultra PCS Limited from the Cobham Ultra Group. Ultra PCS's innovative solutions for safety and mission critical aerospace systems will augment Eaton's portfolio in both military and civilian aircraft. We expect Ultra PCS's strong growth position on high-margin business to be accretive to Eaton. Under the terms of the agreement, Eaton will pay $1.55 billion for Ultra PCS. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in the first half of 2026. 'Combining Ultra PCS products and aftermarket services with Eaton's will enable us to better serve our customers' needs with tailored, next-generation aerospace solutions,' said John Sapp, president, Aerospace Group. 'We look forward to welcoming Ultra PCS to Eaton and combining our 200-year history of technology and innovation in safety and mission critical systems.' Ultra PCS Limited, headquartered in Cheltenham, U.K. and with operations in the U.K. and U.S., produces electronic controls, sensing, stores ejection and data processing solutions, enabling mission success for global aerospace customers in the air and on the ground. Ultra PCS estimates 2025 sales of approximately $240 million. Eaton is an intelligent power management company dedicated to protecting the environment and improving the quality of life for people everywhere. We make products for the data center, utility, industrial, commercial, machine building, residential, aerospace and mobility markets. We are guided by our commitment to do business right, to operate sustainably and to help our customers manage power ─ today and well into the future. By capitalizing on the global growth trends of electrification and digitalization, we're helping to solve the world's most urgent power management challenges and building a more sustainable society for people today and generations to come. Founded in 1911, Eaton has continuously evolved to meet the changing and expanding needs of our stakeholders. With revenues of nearly $25 billion in 2024, the company serves customers in more than 160 countries. For more information, visit Follow us on LinkedIn. This press release contains forward-looking statements concerning, among other matters, the anticipated acquisition of Ultra PCS Limited and its impact on Eaton's Aerospace segment results. These statements should be used with caution and are subject to various risks and uncertainties, many of which are outside Eaton's control. The following factors could cause actual results to differ materially from those in the forward-looking statements: potential global pandemics, unanticipated changes in the markets for Ultra PCS's business segments; unanticipated downturns in business relationships with customers or their purchases from Ultra PCS; competitive pressures on sales and pricing; supply chain disruptions, unanticipated changes in the cost of material, labor and other production costs, or unexpected costs that cannot be recouped in product pricing; the introduction of disruptive or competing technologies; unexpected technical or marketing difficulties; unexpected claims, charges, litigation or dispute resolutions; strikes or other labor unrest at Ultra PCS or at their customers or suppliers; unanticipated difficulties closing or integrating the acquisition, new laws, tariffs and governmental regulations; interest rate changes; stock market and currency fluctuations; geo-political tensions, war, civil or political unrest or terrorism; and unanticipated deterioration of economic and financial conditions in the United States and around the world. We do not assume any obligation to update these forward-looking statements. View source version on CONTACT: Jennifer Tolhurst +1 (440) 523-4006 [email protected] KEYWORD: NORTH AMERICA UNITED STATES IRELAND UNITED KINGDOM EUROPE OHIO INDUSTRY KEYWORD: OTHER DEFENSE OTHER ENERGY HARDWARE ELECTRONIC DESIGN AUTOMATION DATA MANAGEMENT ENERGY TECHNOLOGY DEFENSE ENGINEERING GOVERNMENT TECHNOLOGY AEROSPACE MILITARY MANUFACTURING SOURCE: Eaton Copyright Business Wire 2025. PUB: 06/16/2025 06:45 AM/DISC: 06/16/2025 06:44 AM
Business Wire
a day ago
- Business
- Business Wire
Eaton signs agreement to acquire Ultra PCS Limited to strengthen position in fast-growing aerospace markets
DUBLIN--(BUSINESS WIRE)--Intelligent power management company Eaton (NYSE:ETN) today announced it has signed an agreement to acquire Ultra PCS Limited from the Cobham Ultra Group. Ultra PCS's innovative solutions for safety and mission critical aerospace systems will augment Eaton's portfolio in both military and civilian aircraft. We expect Ultra PCS's strong growth position on high-margin business to be accretive to Eaton. Under the terms of the agreement, Eaton will pay $1.55 billion for Ultra PCS. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in the first half of 2026. 'Combining Ultra PCS products and aftermarket services with Eaton's will enable us to better serve our customers' needs with tailored, next-generation aerospace solutions,' said John Sapp, president, Aerospace Group. 'We look forward to welcoming Ultra PCS to Eaton and combining our 200-year history of technology and innovation in safety and mission critical systems.' Ultra PCS Limited, headquartered in Cheltenham, U.K. and with operations in the U.K. and U.S., produces electronic controls, sensing, stores ejection and data processing solutions, enabling mission success for global aerospace customers in the air and on the ground. Ultra PCS estimates 2025 sales of approximately $240 million. Eaton is an intelligent power management company dedicated to protecting the environment and improving the quality of life for people everywhere. We make products for the data center, utility, industrial, commercial, machine building, residential, aerospace and mobility markets. We are guided by our commitment to do business right, to operate sustainably and to help our customers manage power ─ today and well into the future. By capitalizing on the global growth trends of electrification and digitalization, we're helping to solve the world's most urgent power management challenges and building a more sustainable society for people today and generations to come. Founded in 1911, Eaton has continuously evolved to meet the changing and expanding needs of our stakeholders. With revenues of nearly $25 billion in 2024, the company serves customers in more than 160 countries. For more information, visit Follow us on LinkedIn. This press release contains forward-looking statements concerning, among other matters, the anticipated acquisition of Ultra PCS Limited and its impact on Eaton's Aerospace segment results. These statements should be used with caution and are subject to various risks and uncertainties, many of which are outside Eaton's control. The following factors could cause actual results to differ materially from those in the forward-looking statements: potential global pandemics, unanticipated changes in the markets for Ultra PCS's business segments; unanticipated downturns in business relationships with customers or their purchases from Ultra PCS; competitive pressures on sales and pricing; supply chain disruptions, unanticipated changes in the cost of material, labor and other production costs, or unexpected costs that cannot be recouped in product pricing; the introduction of disruptive or competing technologies; unexpected technical or marketing difficulties; unexpected claims, charges, litigation or dispute resolutions; strikes or other labor unrest at Ultra PCS or at their customers or suppliers; unanticipated difficulties closing or integrating the acquisition, new laws, tariffs and governmental regulations; interest rate changes; stock market and currency fluctuations; geo-political tensions, war, civil or political unrest or terrorism; and unanticipated deterioration of economic and financial conditions in the United States and around the world. We do not assume any obligation to update these forward-looking statements.
