UPDATE 2-Eaton to buy Cobham Mission Systems in $2.83 bln deal

(Adds details about Cobham Mission Systems’ parent)

Feb 1 (Reuters) - Hydraulics maker Eaton Corp said on Monday it had agreed to buy air-to-air refueling equipment maker Cobham Mission Systems (CMS) in a $2.83 billion deal to strengthen its aerospace business.

CMS is a unit of UK-based Cobham Plc, which makes electronic warfare systems and communications for military vehicles and was bought by private equity firm Advent International in 2020 for 4 billion pounds ($5.47 billion).

U.S.-based CMS employs around 2,000 people globally, and mainly serves the defense sector.

Excluding $130 million in tax benefits, the purchase price for CMS is about 14 times its 2020 earnings before interest, taxes, depreciation, and amortization (EBITDA) and 13 times its estimated 2021 EBITDA, Eaton said.

Ireland-based Eaton makes products including explosion-proof instrumentation, pumps, motors and hydraulic power units, and serves markets including oil and gas, mining, marine and agriculture.

The deal is expected to close in the second half of 2021. ($1 = 0.7309 pounds) (Reporting by Ankit Ajmera in Bengaluru; Editing by Vinay Dwivedi)