Expanding its presence in the pole-line hardware business, Hubbell Inc., Orange, Conn., agreed to acquire a package of utility products from Cooper Industries' power systems unit for $8.7 million cash. The purchase price is subject to adjustment at closing, which is expected in about 60 days.
Hubbell said it would purchase product inventories and materials, production equipment, tools and dies and related equipment. Hubbell will not take possession of Cooper's production facility and real estate in East Stroudsburg, Pa.
Cooper, which did not separate out product line revenue for the pole-line hardware business, said the business accounted for just a small portion of Cooper's Power Systems division.
Once the deal is closed, the acquired assets would be moved to Hubbell Power Systems facilities in Centralia, Mo. The move is expected to be completed in the first quarter of 2003, according to Hubbell. Tom Smith, group vice president for Hubbell Power Systems in Centralia, will oversee the operation.