HOUSTON (AP) -- Cooper Industries plc and diversified manufacturer Danaher Corp. said Friday they have agreed to form a joint venture to blend operations of some of their tool manufacturing businesses.
Cooper and Danaher each will own 50 percent of the new company. It will include Cooper's portfolio of power tools products, wireless technologies and hand tools, and Danaher's mechanic's hand tools businesses.
Under the agreement, the new company will make a $90 million dividend payment to Danaher, which is based in Washington, D.C.
The agreement is pending regulatory approvals and is expected to close in the second quarter.
The joint venture should generate revenue topping $1.2 billion, with worldwide sales and an improved cost position, Kirk S. Hachigian, chairman and CEO of Cooper Industries, said in a statement.
Cooper, which is based in Houston, and Danaher will have an equal voting interest and equal number of representatives on the new company's board of directors.
Shares of Cooper rose $1.36, or 3 percent, to $47.32, and shares of Danaher rose 82 cents to $77.29 in morning trading.