Eaton to Acquire Cooper Industries

Noria news wires

Industrial manufacturer Eaton Corporation recently announced that it has agreed to acquire electrical equipment supplier Cooper Industries. At the close of the transaction, which is expected in the second half of 2012, Eaton and Cooper will be combined under a new company incorporated in Ireland. The newly created company, which is expected to be called Eaton Global Corporation, will be led by Alexander M. Cutler, Eaton’s current chairman and chief executive officer.

“This compelling combination of Eaton’s power distribution and power quality equipment and systems with Cooper’s diversified component brands, global reach and international distribution creates a game changer to serve the electrical industry,” said Cutler. “We’re excited about bringing together two great companies to create shareholder value and continue our global growth. This combination significantly expands our ability to better serve our customers with their demands for critical energy-saving technologies as they address the impact of the world’s growing energy needs.”

“We are extremely pleased to become part of Eaton’s global electrical business,” said Kirk Hachigian, chairman and chief executive officer of Cooper. “This combination creates endless opportunities to accelerate growth and serve our global customers through combining technology, distribution, penetrating important vertical industries and entering new emerging markets. The two companies are a perfect fit in every respect.”

The combined company would have had historical 2011 revenues of $21.5 billion, and it is expected to enhance shareholder value by:

  • Leveraging complementary product offerings between Eaton and Cooper’s electrical businesses.
  • Accelerating long-term growth potential by increasing exposure to attractive end markets and service opportunities.
  • Better satisfying customer global demands for energy efficiency and electrical safety.
  • Generating approximately $535 million in expected annual synergies by 2016.

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