.gif)
.gif)
Industry News
May 22, 2012
Eaton to Acquire Cooper Industries to Form Premier Global Power Management Company
Eaton Corp. and electrical equipment supplier Cooper Industries plc announced they have entered into a definitive agreement under which Eaton will acquire Cooper in a transaction that 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 Corporation Plc or a variant thereof ("New Eaton"), will be led by Alexander M. 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 chief executive officer 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 combined company would have had historical 2011 revenues of $21.5 billion and EBITDA of $3.1 billion, and it is expected to enhance shareholder value by:
Opinion: Distributed Generation Drives Industry Transformation
-- Leveraging complementary product offerings between Eaton and Cooper’s electrical businesses.
-- Accelerating long-term growth potential by increasing exposure to attractive end markets and service opportunities.
-- Generating approximately $535 million in expected annual synergies by 2016.
The Acquisition is expected to be accretive to operating earnings per share by $0.35 in 2014 and by $0.45 in 2015. Excluding the non-cash expense related to the amortization of intangibles arising from purchase accounting, the Acquisition is expected to be accretive to operating earnings per share by $0.65 in 2014 and by $0.75 in 20152. The Acquisition will be financed with a mixture of cash, debt, and equity.
Under the terms of the Transaction Agreement, Cooper Shareholders will receive $39.15 in cash and 0.77479 shares of New Eaton for each Cooper share. Based on the Closing Price for Eaton common stock on Friday May 18, 2012, Cooper Shareholders will receive cash and shares valued at $72.00 per share, representing a premium of 29 percent and a total transaction equity value of approximately $11.8 billion. Eaton Shareholders will receive one share of the new company for each share of Eaton that they own upon closing.
Eaton Shareholders are expected to own approximately 73 percent of the combined company while legacy Cooper Shareholders are expected to own approximately 27 percent.
More news and information regarding the latest developments in Smart Grid electronics can be found at Darnell’s SmartGridElectronics.Net.
Share this story
Send via E-mail
Post to Twitter
On the Web:
White Papers
March 11, 2013
Power Modules for Charger Applications
Sponsored by Vincotech
February 27, 2013
The Adaptive Cell Converter Topology Enables Constant Efficiency Over Universal Input AC Line in Front-End, High-Density Power Factor Correction Applications
Sponsored by Vicor Corp.
February 27, 2013
From 48 V direct to Intel VR12.0: Saving "Big Data" $500,000 per datacenter, per year
Sponsored by Vicor Corp.
More White Papers
- Ericsson Delivers 750W Quarter-Brick using Proprietary HRR Topology
- IXYS Introduces an Anode-Gated Thyristor Technology Platform
- Dreamliner Nightmares a Factor in New UL Standards Activities for Li-ion Batteries
- Ideal Diode Bridge Controller Minimizes Rectifier Heat and Voltage Loss
- Siemens Installing Regenerative Energy Storage Unit on Light Rail Line
- Silicon Labs acquires Energy Micro for IoT, Smart Energy and Portable Electronics
- NXP Brings High Efficiency to 12V MR16 Lamps with Dimmable LED Controller
- Ultra-Compact High-Efficiency Power Supplies for Automotive Applications
- Curtis Industries Acquires California-based Tri-Mag
- Convection-Cooling Eliminates Fan Maintenance and Audible Noise in 250W Power Supplies
- Single-Stage LED Drivers Deliver Dimming and Thermal Protection with Lower BOM Cost
- Convection-Cooling Eliminates Fan Maintenance and Audible Noise in 250W Power Supplies
- Ericsson Delivers 750W Quarter-Brick using Proprietary HRR Topology
- Siemens Installing Regenerative Energy Storage Unit on Light Rail Line
- Dreamliner Nightmares a Factor in New UL Standards Activities for Li-ion Batteries
- GE Intros Megawatt UPS Global Platform with Industry-Leading Efficiency
- Dow Corning adds Thermal Management Options Optimized for Electronics Applications
- ABB Demonstrates Technology to Power Flash Charging Electric Bus in 15 Seconds
- Power-One Announces New Open-Frame Products for Industrial and Medical Applications
- ABB to Produce PV Inverters in South Africa as Solar Market Expands
- Green Building Power Forum 2010: Fujitsu Components America
- Darnell's Digital Power Forum 2009: CUI Incorporated
- Green Building Power Forum 2010: EMerge Alliance
- Green Building Power Forum 2010: Anderson Power Products
- Green Building Power Forum 2009: Independence Station
- Darnell's Digital Power Forum 2009: Coilcraft
- Darnell's Digital Power Forum 2009: Champs Technologies
- Darnell's Digital Power Forum 2009: EXAR Corporation
- Darnell's Digital Power Forum 2009: PMBus
- Darnell's Digital Power Forum 2009: Power Plaza
Design Features
October 22, 2012
Energy Efficiency with Class D Amplifier Modules
Class-D switching amplifiers are helping audio designers create personal multimedia devices and home audio/visual systems that demonstrate how compact and stylish equipment can also deliver high sound quality and high audio output power. The key to this breakthrough, providing freedom from the large and bulky boxes housing traditional audio products, lies in the class-D amplifier’s high energy efficiency, which is typically around 90%. This allows designers to reduce or eliminate heatsinks as well as using smaller-sized PCBs and smaller components such as transformers, connectors and power supplies.
Design Features
October 8, 2012
The Role of Hall Effect Sensors in Power Distribution Infrastructure
Power distribution units (PDUs) form an essential part of modern computing and data communications hardware. They provide multiple outputs for transferring electrical power with maximum efficiency, controlling the power capacity and safeguarding against the possible causes of supply interruption. With an ever increasing need from tech savvy consumers for higher data throughput and greater quantities of data storage capacity, as well as tough international legislation now governing CO&sub2; emissions, the demands being placed on these units are proving challenging for engineering teams to satisfy.
Product Focus
August 13, 2012
The Year in AC-DC Power Supply Technology
The past year witnessed significant new product releases, technological developments, and industry news related to the field of AC-DC Power Supply technology.