Eaton Receives Arbitration Decision Related to Legacy Cooper Business
29 Agosto 2018 - 10:30PM
Business Wire
Power management company Eaton (NYSE:ETN) announced that certain
subsidiaries it acquired in the 2012 acquisition of Cooper
Industries have been ordered to pay $293 million by an arbitration
panel. The panel’s award, issued on August 23, 2018, is related to
claims brought by Pepsi-Cola Metropolitan Bottling Company, Inc.
(“Pepsi”).
As Eaton previously disclosed, the dispute related to Pepsi’s
claims that it was harmed by a 2011 settlement agreement that
resolved litigation Pneumo Abex, LLC had previously brought against
various Cooper entities. The litigation involved, among other
things, a guaranty related to Pneumo Abex’s friction products
business. Pepsi claimed that the value contributed to Pneumo Abex
and a newly established trust in exchange for a release of the
guaranty was substantially below reasonably equivalent value, and
that an inability of Pneumo Abex to satisfy future liabilities may
result in plaintiffs suing Pepsi under various theories. There are
no other pending claims related to the contributions made for the
release of the guaranty.
Eaton intends to challenge the arbitration award on several
grounds.
Eaton estimates the impact of the arbitration award will be an
after-tax expense of $205 million in the third quarter 2018,
reducing third quarter earnings per share by $0.47.
Eaton is a power management company with 2017 sales of $20.4
billion. We provide energy-efficient solutions that help our
customers effectively manage electrical, hydraulic and mechanical
power more efficiently, safely and sustainably. Eaton is dedicated
to improving the quality of life and the environment through the
use of power management technologies and services. Eaton has
approximately 96,000 employees and sells products to customers in
more than 175 countries. For more information, visit Eaton.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20180829005744/en/
Eaton CommunicationsMedia RelationsKelly Jasko, +1
440-523-5304kellymjasko@eaton.comorInvestor RelationsDonald
Bullock, +1 440-523-5127
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