Major acquisition! Eaton to acquire Cooper Industries
By Anthony Capkun
May 21, 2012 – Eaton Corp. and electrical equipment supplier Cooper Industries plc have entered into a definitive agreement under which Eaton will acquire Cooper in a transaction that will increase the capabilities and geographic breadth of the combined company’s power management portfolio and electrical business.
“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 Alexander M. Cutler, Eaton’s current chair and CEO. “We’re excited about bringing together two great companies to create shareholder value and continue our global growth.”
Founded in 1833, Cooper is a supplier of electrical equipment with a range of electrical products, including electrical protection, power transmission and distribution, lighting and wiring components.
Founded in 1911, Eaton is a power management company; its electrical business is a player in power distribution, power quality, control and automation, power monitoring, and energy management products and services.
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, where Cooper is incorporated today. The newly created company—which is expected to be called Eaton Global Corp. Plc, or a variant thereof—will be led by Cutler.
“We are extremely pleased to become part of Eaton’s global electrical business,” said Kirk Hachigian, Cooper CEO. “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 EBITDA of $3.1 billion.
Photo: Eaton operations technician Juan Cruz and Kim Wagner get a low-voltage power circuit breaker ready to ship to a customer. Photo © Eaton.