Industrial manufacturer
Eaton Corporation
(
ETN
) has decided to acquire Omaha, Nebraska based E.A. Pedersen
Company. The latter is the manufacturer of medium voltage
switchgear catering primarily to the electrical utilities.
E.A. Pedersen Company's offering of products include metal-clad
switchgear, power control buildings and relay control panels.
Eaton's decision to acquire Pedersen Company gels well with the
strategy to strengthen its footprints in the medium voltage
assembly business by adding important utility-oriented power
products. Plus, this acquisition will add to Eaton's custom
engineering capabilities for its U.S. customers.
We believe Eaton's decision to acquire an electrical equipment
manufacturer is guided towards its ulterior aim to transform into a
diversified industrial enterprise with important positions in core
electrical, hydraulic and aerospace markets. Eaton has hitherto
been regarded as an automotive and truck component
manufacturer.
The company has also resorted to timely acquisitions to expand
its global reach. Its financial strength allows for such strategic
buys. In the third quarter, the company acquired Canada based IE
Power Inc., a provider of high power inverters and Germany based E.
Begerow GmbH & Co. KG, a liquid filtration solution.
We believe Eaton's overseas presence and its capacity to supply
diversified power accessories to the aerospace industry have placed
it in an advantageous position. As per industry-wide traits, global
commercial aerospace is expected to grow substantially in the next
couple of decades.
Eaton Corporation currently retains a Zacks #3 Rank, which
translates into a short-term Hold rating. The company competes with
ITT Corporation
(
ITT
) and
Parker Hannifin Corporation
(
PH
).
Cleveland, Ohio-based diversified power management company Eaton
Corporation is a leading supplier of power accessories in the
aerospace industry and has customers spanning 150 countries.
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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