CLEVELAND (AP) — Diversified industrial manufacturer Eaton Corp. said Thursday it will acquire a European and Asian manufacturer in an effort to expand its international electrical business.
The company said it plans to buy Germany's Moeller Group, which supplies components for commercial and residential building applications, and industrial controls, for $2.23 billion.
The deal is expected to close in the first quarter of 2008.
Moeller has estimated 2007 sales of $245 million.
Eaton said it will launch a tender offer for Asian power supply system manufacturer Phoenixtec Power Company Ltd. on Dec. 21. The purchase price is $1.54 per share, implying a net price of $565 million if all the outstanding shares are purchased.
Eaton said Phoenixtec has already agreed to tender about 25 percent of its shares to Eaton in the deal.
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.
