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The Eaton Corp. announced Monday that it would acquire Cooper Industries (www.eaton.com), the parent company of Crouse Hinds, for $11.8 billion.
Crouse Hinds operates a manufacturing plant in far south Amarillo. By the last count available to the Amarillo Chamber of Commerce, the plant had 35 full-time employees.
Both Eaton and Cooper Industries are in power management and electrical equipment businesses.
Acquisition plans call for the purchase to close by the end of this year and operate as Eaton Global Corp. Plc, with Alexander M. Cutler, Eaton's chairman and chief executive, being in charge. The company would be incorporated in Ireland, where Cooper is incorporated today.
The companies had combined 2011 revenues of $21.5 billion.
Cooper shareholders will receive $39.15 in cash and 0.77479 of a share for each Cooper share, which works out to a value of $72 a share, or a 29 percent premium above the stock's recent price. Eaton shareholders will receive one share of the new company for each Eaton share now held with the new shares expected to be traded on the New York Stock Exchange.
Eaton has a $6.75 billion financing commitment from Morgan Stanley Bank, N.A., Morgan Stanley Senior Funding Inc., and Citbank, N.A. to finance the cash portion of the deal. Eaton's announcement said that it plans to refinance this bridge loan through new debt issuance, its cash, and the possible sale of assets.