Advent International has agreed to sell Ultra Precision Control Systems (Ultra PCS) to US-based Eaton Corporation for $1.55bn, marking another high-profile divestment from the private equity firm’s aerospace and defence portfolio.

Based in Cheltenham, UK, Ultra PCS supplies mission-critical components such as missile ejection systems and ice-protection technologies for platforms including the F-35 fighter jet. The sale is expected to close in the first half of 2026, pending regulatory approvals.

The transaction represents Eaton’s largest defence-related acquisition since it acquired Cobham Mission Systems – also from Advent – for $2.8bn in 2021. It further expands Eaton’s offering in both commercial and military aviation.

The exit forms part of Advent’s broader strategy to break up and monetise its Cobham-Ultra portfolio, which began with the £4bn acquisition of Cobham in 2020. The firm has already exited Cobham Satcom and ScioTeq, the latter of which was sold to Tikehau Capital earlier this week through its aerospace and defence fund.

Eaton reportedly moved quickly to secure Ultra PCS in a pre-emptive deal, bypassing a formal auction. The business is expected to generate approximately $240m in revenue in 2025, implying a 6.5x sales multiple.

While some analysts flagged the valuation as rich, others pointed to Ultra PCS’s strategic alignment with Eaton’s platform and its exposure to growing defence budgets across Europe as justification for the price.

Source: Bloomberg

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