Eaton acquires electrical equipment supplier Cooper Industries

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Updated May 29, 2012

Eaton Corp. and electrical equipment supplier Cooper Industries on Monday, May 21, announced they have entered into a definitive agreement under which Eaton will acquire Cooper in a $11.8 billion transaction both say will significantly increase the capabilities and geographic breadth of the combined company’s power management portfolio and electrical business.

At the close of the transaction, which is expected in the second half of 2012, Eaton and Cooper will be combined under a new company incorporated in Ireland, where Cooper is incorporated today. The newly created company, which is expected to be called Eaton Global Corp. or a variant thereof (“New Eaton”), will be led by Alexander Cutler, Eaton’s current chairman and chief executive officer.

“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 Cutler. “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.”