Eaton to acquire Moeller Group
Cleveland, OH -- Eaton Corporation has announced plans for two electrical acquisitions, one in Europe and one in As...
Cleveland, OH — Eaton Corporation has announced plans for two electrical acquisitions, one in Europe and one in Asia Pacific, which will significantly increase the capabilities, size, and geographic breadth of Eaton’s electrical business. The acquisitions’ combined estimated sales for the year ending December 31, 2007 are approximately $2.0 billion.
The European acquisition is of The Moeller Group, a supplier of components for commercial and residential building applications, and industrial controls for industrial equipment applications. The company sells products primarily to customers in Western and Eastern Europe and in Asia Pacific. The agreed purchase price is US $2.23 billion. The transaction, expected to close in the first quarter of 2008, is subject to regulatory approvals and other customary closing conditions.
Based in Bonn, Germany, the Moeller Group has 15 global production facilities, sales offices in more than 90 countries, and approximately 8,700 employees.
Eaton also announced a tender offer for all the shares of Phoenixtec Power Company Ltd., a company listed on the Taiwan Stock Exchange. Phoenixtec manufactures single- and three-phase uninterruptible power supply (UPS) systems that are sold globally. Phoenixtec has positions in UPS markets particularly in China, Southeast Asia, and Eastern Europe. The offer remains subject to regulatory approvals and customary closing conditions, including the condition that a minimum of 51 percent of shares must be tendered to Eaton.
Based in Taipei, Taiwan, the company has manufacturing facilities in China and Taiwan, and employs approximately 5,800 people.
“These two transactions further establish Eaton as a leading global supplier of electrical power distribution and control products as well as power quality equipment and systems,” said Alexander M. Cutler, Eaton chairman and chief executive officer. “Once these acquisitions close, our electrical business will have annual revenues in excess of $7.5 billion. Further, Eaton’s mix of international revenues, based on final destination of our products, will be between 55% to 60%.