Eaton Corp., Cleveland, plans to buy two manufacturers in Europe and Asia to expand its international electrical business. The acquisitions' combined estimated sales for the year ending Dec. 31 are approximately $2 billion.
The company said it plans to buy Germany's Moeller Group for $2.2 billion. The Moeller Group supplies 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.
Based in Bonn, Germany, The Moeller Group has estimated sales of approximately $1.5 billion for 2007. The deal is expected to close in the first quarter of 2008. The company 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 Co. Ltd., a company listed on the Taiwan Stock Exchange. The offer launched on Dec. 21. Phoenixtec manufactures single- and three-phase uninterruptible power supply (UPS) systems that are sold globally. Phoenixtec has leading positions in UPS markets particularly in China, Southeast Asia and Eastern Europe.
“The Moeller Group's broad portfolio of power distribution and control products that meet International Electrotechnical Commission (IEC) standards, along with its strong distribution network in both Western and Eastern Europe and its large-scale production facilities in several Eastern European countries, will significantly expand our competitiveness in electrical markets outside the United States,” said Alexander M. Cutler, Eaton chairman and chief executive officer.
“We are equally excited about the acquisition of Phoenixtec. The company's leadership position in the China and Taiwan power quality markets provides us a strong foundation to sell our entire range of power quality products. In addition, the company's engineering capabilities and its manufacturing facilities in Taiwan and China provide us with the products, technical knowledge and competitive manufacturing footprint to greatly expand our global power quality business.”