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Eaton Deals to Grow in Europe and Asia

Eaton Corp. will acquire The Moeller Group of Germany for $2.23 billion and Taiwan's Phoenixtec Power Company Ltd. for about $565 million, the industrial manufacturer said Thursday.
/ Source: The Associated Press

Eaton Corp. will acquire The Moeller Group of Germany for $2.23 billion and Taiwan's Phoenixtec Power Company Ltd. for about $565 million, the industrial manufacturer said Thursday.

Eaton expects to close both acquisitions early next year.

Moeller Group, based in Bonn, concentrates on commercial and residential building electrical systems and industrial controls. Estimated revenues for this year are $1.47 billion. Moeller, with about 8,700 employees, does business in Western and Eastern Europe and in the Asia Pacific region.

Phoenixtec Power Company Ltd., based in Taipei, Taiwan, has manufacturing facilities in China and Taiwan. It employs approximately 5,800 people.

It is a substantial global expansion for Cleveland-based Eaton which has been snapping up companies over the past year.

Eaton said it will launch a tender offer Friday for Phoenixtec Power at $1.54 per share. Eaton said Phoenixtec has already agreed to tender about 25 percent of its shares to Eaton.

Estimated 2007 sales for Phoenixtec are $495 million.

Eaton expects that the acquisitions will boost earnings by 25 cents to 35 cents per share annually beginning in 2009.

Shares rose 92 cents, or 1.6 percent, to $58.27 in early trading Thursday.

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