Eaton buying Powerware from Invensys for $560 million

Cleveland, OH— Eaton Corp. has agreed to purchase Invensys PLC ’s power systems business, Powerware Corp., for $560 million. The transaction is expected to close by the end of 2004’s second quarter, pending regulatory review and approval from Invensys’ shareholders.

Powerware manufactures uninterruptible power systems (UPS), dc power products, and power quality services. The company had estimated revenues of approximately $775 million for the year that ended March 31, 2004. Its products, solutions, and services have a wide range of commercial, industrial, governmental and institutional applications.

‘The acquisition of Powerware will provide new products and solutions, along with strong brand recognition and expanded channels, for Eaton’s global electrical business,’ says Alexander M. Cutler, Eaton’s chairman and CEO.

Randy Carson, Eaton’s senior VP and Electrical division group executive, adds that, ‘Powerware will strengthen our ability to satisfy customers’ increasing demand for assured uptime and productivity. Eaton will be able to provide customers with complete power reliability solutions spanning electrical distribution, back-up power generation, control and facility-wide monitoring and services.’

Based in Raleigh, N.C., Powerware provides products and services used by computer manufacturers, industrial companies, government, telecommunications firms, medical institutions, data centers and other businesses. It offers a full line of UPS three-phase and single-phase products, and dc power systems, power management software, remote monitoring, integration services and site support.

‘We expect the acquisition of Powerware to be accretive to our earnings starting in 2004,” adds Cutler. “Accordingly, we are raising our full-year guidance for net income per share by $.05 to $3.70 to $3.85, and we are raising our guidance for operating earnings per share by $.10 to $3.85 to $4.00. The impact on 2005 is expected to be an increase in net income per share of $.19 and an increase in operating earnings per share of $.25.’

Control Engineering Daily News DeskJim Montague, news editorjmontague@reedbusiness.com

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