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Eaton to Acquire Cooper Industries for $11.8B
Electrical giant Eaton Corp. has announced it will acquire Cooper Industries, makers of lighting control switches, for $11.8 billion.
Eaton Corporation (NYSE: ETN) and electrical equipment supplier Cooper Industries (NYSE: CBE) have entered into a definitive agreement under which Eaton will acquire Cooper in a transaction that will significantly increase the capabilities and geographic breadth of the combined company’s power management portfolio and electrical business.
In the residential low-voltage datacomm space, Cooper Wiring Devices makes video modules, wall plates, data modules, structured wiring enclosures, and phone modules. Eaton makes residential structured wiring solutions, surge protection, spa controls, solar inverters and electric vehicle charging stations.
Eaton reported $16 billion in revenue in 2011 while Cooper had $5.4 billion last year. The combined company would have had historical 2011 revenues of $21.5 billion and EBITDA of $3.1 billion.
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 Corporation Plc or a variant thereof, 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.”
In the residential low-voltage datacomm space, Cooper Wiring Devices makes video modules, wall plates, data modules, structured wiring enclosures, and phone modules. Eaton makes residential structured wiring solutions, surge protection, spa controls, solar inverters and electric vehicle charging stations.
Eaton reported $16 billion in revenue in 2011 while Cooper had $5.4 billion last year. The combined company would have had historical 2011 revenues of $21.5 billion and EBITDA of $3.1 billion.
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 Corporation Plc or a variant thereof, 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.”
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Article Topics
News · Wire and Cable · Structured Wiring · Datacomm · Datacomm · Mergers And Acquisitions · Mergers And Acquisitions ·About the Author
Jason has covered low-voltage electronics as an editor since 1990. He joined EH Publishing in 2000, and before that served as publisher and editor of Security Sales, a leading magazine for the security industry. He served as chairman of the Security Industry Association’s Education Committee from 2000-2004 and sat on the board of that association from 1998-2002. He is also a former board member of the Alarm Industry Research and Educational Foundation. He is currently a member of the CEDIA Education Action Team for Electronic Systems Business. Jason graduated from the University of Southern California.
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