Eaton Deals for Cooper Industries

Monday, May 21, 2012 @ 06:05 PM gHale

In a move to expand its power management portfolio and electrical business, industrial manufacturer Eaton Corp. will pay $11.8 billion to pick up electrical equipment supplier Cooper Industries PLC.

Backed by both boards, the deal needs approval of shareholders and regulators. If approved, Eaton and Cooper will combine under a new company incorporated in Ireland, as Cooper is now.

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The new company, tentatively called Eaton Global Corp., will be the tutelage of 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.

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.

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