Eaton Acquiring Cooper Industries, Incorporating in Ireland
The $11.8 billion deal "creates a game changer to serve the electrical industry," said Alexander M. Cutler, Eaton's chairman and CEO.
An $11.8 billion acquisition is combining Eaton Corporation's power management business with the electrical equipment business of Cooper Industries, with Eaton announcing the deal May 21. Assuming it closes as expected in the second half of 2012, the new company will be called Eaton Global Corporation Plc (or some variant of that name) and will be incorporated in Ireland, where Cooper is based, rather than in Cleveland, Ohio, where Eaton has its headquarters, according to the announcement posted by Eaton.
Cooper Industries includes a Cooper Safety division based in England that makes emergency lighting, fire safety and security systems, and intruder alarms. Cooper US, Inc.'s headquarters are in Houston. Eaton was founded in 1911, Cooper in 1833.
"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 Alexander M. Cutler, Eaton's chairman and CEO. "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 CEO 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."
The announcement said the combined company would have had historical 2011 revenues of $21.5 billion and EBITDA of $3.1 billion and is expected to generate approximately $535 million in annual synergies by 2016.