Eaton agrees to acquire Moeller Group; launches tender offer for Phoenixtec

Cleveland, OH —  Eaton Corp. plans two acquire two electrical companies, in Europe and Asia Pacific, The Moeller Group and Phoenixtec Power Co. Ltd. Combined estimated sales of the acquisitions for the year ending Dec. 31, 2007, are approximately $2.0 billion.

01/11/2008


Cleveland, OH

Eaton Corp

. plans two acquire two electrical companies, in Europe and Asia Pacific, The Moeller Group and Phoenixtec Power Co. Ltd. Combined estimated sales of the acquisitions for the year ending Dec. 31, 2007, are approximately $2.0 billion.

Eaton provides related links for related financial news .

For more from Control Engineering on Eaton power capabilities, read:

On the road: Eaton shows power system diagnostic benefits

.

In other recent acquisition news, also see:
Sold: Analog Devices sells CPU voltage, PC thermal monitoring business to ON Semiconductor

The Moeller Group of Bonn, Germany , supplies components for commercial and residential building applications and industrial controls for industrial equipment applications. The company sells primarily to Western and Eastern Europe and Asia Pacific. Purchase price is€1.55 billion (U.S. $2.23 billion). The transaction, expected to close in first-quarter 2008, is subject to regulatory approvals and customary closing conditions. The Moeller Group has estimated sales of €1.02 billion (U.S. $1.47 billion) and EBITDA of €170 million (US $245 million) for the 12months ending December 31, 2007. 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 all shares of Phoenixtec Power Co. Ltd. (Taipei, Taiwan), which is listed on the Taiwan Stock Exchange. Phoenixtec makes single- and three-phase uninterruptible power supply (UPS) systems that are sold worldwide. Phoenixtec has leading positions in UPS markets in China, Southeast Asia, and Eastern Europe. Eaton’s offer price is NT $50 per share (U.S. $1.54 per share). Assuming 100% of Phoenixtec outstanding shares are purchased, the net purchase price would be U.S. $565 million.

The chairman of Phoenixtec and board members entered into agreements to tender shares representing 25% of Phoenixtec’s shares to Eaton. The offer is subject to regulatory approvals and customary closing conditions, including a minimum of 51% of shares tendered to Eaton. Estimated 2007 sales of Phoenixtec Power Co. Ltd. are NT $16.1 billion (U.S. $495 million) and estimated 2007 EBITDA is NT $1.7 billion (US $5.2. million). The company has manufacturing facilities in China and Taiwan, and employs approximately 5,800 people.

These two transactions further establish Eaton as a leading global supplier of electrical power distribution and control products as well as power quality equipment and systems,” said Alexander M. Cutler, Eaton chairman and CEO. “Once these acquisitions close, our Electrical business will have annual revenues in excess of $7.5 billion. Further, Eaton’s mix of international revenues, based on final destination of our products, will be between 55% and 60%…[these]  actions clearly underscore Eaton’s success in expanding our electrical business globally. 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.

“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 the products, technical knowledge, and competitive manufacturing footprint to greatly expand our global power quality business.

" We expect these acquisitions to be neutral to our operating earnings per share in 2008 , and accretive by $0.25 to $0.35 per share in 2009. Our outlook in 2008 for Eaton overall, inclusive of these acquisitions, is for revenues to grow 25% and operating earnings per share to grow between 15% and 20%. We intend to finance the acquisitions with a mixture of cash, debt and equity. Our intent is to manage the long-term debt and equity issuances in a manner to maintain our current‘A’ long-term debt credit rating.”

Control Engineering News Desk
( Register here and scroll down to select your choice of eNewsletters free .)





No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
World-class manufacturing: A recipe for success: Finding the right mix for a salad dressing line; 2015 Salary Survey: Manufacturing slump dims enthusiasm
2015 Top Plant: Phoenix Contact, Middletown, Pa.; 2015 Best Practices: Automation, Electrical Safety, Electrical Systems, Pneumatics, Material Handling, Mechanical Systems
A cool solution: Collaboration, chemistry leads to foundry coat product development; See the 2015 Product of the Year Finalists
Digital oilfields: Integrated HMI/SCADA systems enable smarter data acquisition; Real-world impact of simulation; Electric actuator technology prospers in production fields
Special report: U.S. natural gas; LNG transport technologies evolve to meet market demand; Understanding new methane regulations; Predictive maintenance for gas pipeline compressors
Cyber security cost-efficient for industrial control systems; Extracting full value from operational data; Managing cyber security risks
Getting ready for industrial IoT; Visualizing the (applied) automation continuum; Preventing VFD faults and failures; Using wireless for closed-loop applications
Migrating industrial networks; Tracking HMI advances; Making the right automation changes
Understanding transfer switch operation; Coordinating protective devices; Analyzing NEC 2014 changes; Cooling data centers

Annual Salary Survey

After almost a decade of uncertainty, the confidence of plant floor managers is soaring. Even with a number of challenges and while implementing new technologies, there is a renewed sense of optimism among plant managers about their business and their future.

The respondents to the 2014 Plant Engineering Salary Survey come from throughout the U.S. and serve a variety of industries, but they are uniform in their optimism about manufacturing. This year’s survey found 79% consider manufacturing a secure career. That’s up from 75% in 2013 and significantly higher than the 63% figure when Plant Engineering first started asking that question a decade ago.

Read more: 2014 Salary Survey: Confidence rises amid the challenges

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role that compressed air plays in manufacturing plants.