Member access

4-Traders Homepage  >  Shares  >  Nyse  >  Eaton Corp PLC       US2780581029


Eaton Agrees To Acquire Cooper Industries In $11.8 Billion Cash-And-Stock Deal

05/21/2012 | 09:52am US/Eastern

Industrial manufacturer Eaton Corp. (>> Eaton Corporation) agreed to acquire electrical equipment supplier Cooper Industries PLC (CBE) in a roughly $11.8 billion cash-and-stock deal it expects will vastly expand its power management portfolio and electrical business.

The deal offers Cooper shareholders $72 a share in cash and stock, a 29% premium to its Friday close. Shares, which have never traded above the offer price, surged 25% in recent trade to $69.84.

Backed by both boards, the proposed tieup must now garner the approval of shareholders and regulators. If approved, Eaton and Cooper will be combined under a new company incorporated in Ireland, as Cooper is now.

The new company, tentatively set to be called Eaton Global Corp., will be led by current Eaton Chief Executive Alexander M. Cutler.

"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," Cutler said in a statement Monday.

Eaton expects the combination with Cooper will begin adding to its operating earnings by 2014 and lend to roughly $535 million in annual synergies by 2016.

Cooper, which manufactures electrical products such as lighting fixtures and fuses, has benefited from an industrial rebound, with an added boost from its acquisitions. It has also seen growth in utility markets, though the construction market has remained weak.

Eaton, meanwhile, last month reported a gain in first-quarter earnings that was helped by a strong performance in its electrical business in the Americas.

Shares of Eaton were recently down 28 cents to $42.12. Through the Friday close, the stock is down 2.6% since the start of the year.

--By Mia Lamar, Dow Jones Newswires; 212-416-3207;

Stocks mentioned in the article : Eaton Corporation
Recommend :
React to this article
Latest news on EATON CORP PLC
8m ago EATON : Sandra Pianalto Elected to Eaton Board of Directors
15m ago EATON : Quarterly Dividend Payable August 22, 2014
4d agoDJEaton's Profit to Take a Hit from Settlement Costs
4d ago EATON : Clarifies Impact of Recent Divestitures and Legal Settlements on Second ..
6d ago EATON : Appoints Maureen Bagley Director, Enterprise Architecture
6d ago EATON : Appoints Tobi Gibbons to Director, Corporate HR
07/11 EATON : Bolsters Fluid Power Workforce by Donating to Minnesota’s Largest ..
07/10 EATON : Selected by Rolls-Royce to Continue Providing Engine Build-Up Sub-System..
07/09 EATON : Introduces Catalog of OSHPD Pre-Approved Products to Simplify the Specif..
07/09 EATON : Provides Industry-Leading Electrical Efficiency to Optimize Energy Harve..
Dynamic quotes