Eaton Corporation plc (NYSE:ETN) is expanding its European power-distribution business through the acquisition of COL Group, adding medium-voltage technology and manufacturing capacity to serve growing data center and utility demand.
Eaton agreed to acquire COL Group from Oaktree's Power Opportunities strategy for an enterprise value of 810 million euros (~$921.32 million).
With COL Group forecasting 250 million euros in 2027 sales, the deal implies an enterprise value-to-2027-sales multiple of about 3.2x.
The transaction is expected to close in the first quarter of 2027. Eaton reported $483 million in cash as of June 30, 2026.
COL Adds European Data Center Power Capacity
COL Group develops medium-voltage electrical distribution equipment, including SF₆-free switchgear, grid automation technologies and modular power systems.
The company employs about 400 people across facilities in Turin, Milan, Bergamo, and Catania, providing Eaton with additional European manufacturing capacity.
The acquisition comes as power demand from data centers continues to rise.
Data Center Demand Supports Eaton's Electrical Business
Eaton has already pointed to data centers as a growth driver across its electrical operations.
Its Electrical Global segment posted 21% total growth and 9% organic growth in the first quarter of 2026, while rolling 12-month orders increased 13%, according to its earnings call transcript.
Management also said global data center power demand could nearly triple between 2025 and 2030.
Earnings And Wall Street Outlook
Eaton's next estimated earnings report is scheduled for Nov. 3, 2026.
Wall Street expects EPS of $3.50, up from $3.07 a year earlier, on revenue of $8.22 billion versus $6.99 billion.
The stock trades at a price-to-earnings ratio of about 44.8x.
Eaton carries a Buy consensus rating with an average price target of $477.60.
Recent analyst actions include UBS upgrading Eaton to Buy and raising its target to $515 on Sept. 8; Morgan Stanley maintaining an Overweight rating and raising its target to $520 on Aug. 28; and Evercore ISI Group maintaining Outperform and lifting its target to $515 on Aug. 11.
Eaton ETF Exposure
ETN has notable weightings in several infrastructure-focused ETFs. The stock represents 9.02% of the Defiance AI & Power Infrastructure ETF (NASDAQ:AIPO), 8.64% of the First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (NASDAQ:GRID), and 6.95% of the iShares US Power Infrastructure ETF (NYSE:POWR).
Those concentrations mean flows into or out of the funds can contribute to trading activity in Eaton shares.
ETN Stock Price Activity: Eaton Corp shares were up 1.25% at $445.50 during premarket trading on Friday, according to market data.
