Eaton Completes ATCOM Buy - Analyst Blog
05 Luglio 2011 - 3:45PM
Zacks
Eaton Corporation (ETN) said it has
successfully completed the acquisition of the previously announced
ACTOM’s Low-Voltage Electrical Business in South Africa.
Eaton expects the addition of ACTOM’s low-voltage business to
help establish a prominent presence for itself in the attractive
South African market and serve as a platform for growth in the
region. The combination of Eaton’s business with ACTOM’s
low-voltage business will offer a broader set of power distribution
and power quality solutions that will enable customers to more
effectively grow and compete in their markets.
Based in Johannesburg, ACTOM Low-Voltage is a leading South
African manufacturer and supplier of motor control components,
engineered electrical distribution systems and uninterruptible
power supply systems. The company’s business comprises two
manufacturing facilities in South Africa, with total 12-month sales
of $65 million and about 490 employees. Eaton had agreed upon
buying ATCOM in January 2011.
Eaton has always engaged in strategic, overseas acquisitions
that have enhanced its global reach and allowed for inorganic
expansion. Earlier last week, the company said it will buy a German
liquid filtration system producer E. Begerow GmbH and Co. KG to
expand its liquid filtration business. The company said the
acquisition of Begerow will enhance its position in the liquid
filtration market.
In May this year, Eaton had sealed another deal to acquire
German hydraulics company Internormen Technology Group, thereby
expanding its reach in the filtration
products business and venturing into new emerging markets such as
India, China and Brazil.
Cleveland, Ohio-based diversified power management company Eaton
Corporation is a leading supplier of power accessories in the
aerospace and automotive industries and has customers spanning 150
countries. Eaton has 70,000 employees and reported sales of $13.7
billion in 2010.
Over the years, Eaton has gradually transformed itself from an
automotive and truck component manufacturer into a diversified
industrial enterprise with leadership positions in its core
electrical, hydraulic and aerospace market. In our view, the
company’s organic growth will be driven by strength in its
end-markets.
Eaton Corp. is scheduled to release its second quarter 2011
financial results on July 18, 2011. The Zacks Consensus earnings
estimates for second quarter 2011, fiscal 2011 and fiscal 2012 are
95 cents, $3.93 and $4.65 per share, respectively.
Eaton Corporation currently retains a Zacks #2 Rank (short-term
Buy rating). We maintain our long-term ‘Outperform’ rating on the
stock. The company competes with ITT Corporation
(ITT) and Parker Hannifin Corporation (PH).
EATON CORP (ETN): Free Stock Analysis Report
ITT CORP (ITT): Free Stock Analysis Report
PARKER HANNIFIN (PH): Free Stock Analysis Report
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