Eaton Acquires 50 Percent Stake in HuanYu High Tech, Expanding Eaton’s Range of Low-voltage Electrical Components Sold in Asia Pacific

Rhea-AI Summary

Eaton (NYSE:ETN) has finalized the acquisition of a 50% stake in HuanYu High Tech, enhancing its position in low-voltage electrical components in Asia. This strategic partnership with HuanYu Group, a prominent Chinese manufacturer, aims to synergize Eaton’s global scale with HuanYu’s established product portfolio, targeting growth in Southeast Asia's evolving market. The collaboration seeks to leverage HuanYu's manufacturing capabilities and Eaton's extensive distribution network to penetrate various industries, paving the way for future revenue expansion.

Positive

• Acquisition of a 50% stake in HuanYu High Tech expands Eaton's market presence in Asia.
• Strategic partnership combines HuanYu's strong product offerings with Eaton's global scale.
• Focus on growing low-voltage electrical components business in Southeast Asia.

Negative

• None.

Power management company Eaton (NYSE:ETN) today announced it has completed the acquisition of a 50 percent stake in HuanYu High Tech, a subsidiary of HuanYu Group that manufactures and markets low-voltage circuit breakers and contactors in China, and throughout the Asia-Pacific region.

“Our partnership with HuanYu Group represents an exciting opportunity for both companies,” said Howard Liu, president, Asia-Pacific Region, Electrical Sector and Corporate China, Eaton. “HuanYu High Tech’s strong product portfolio and manufacturing capabilities, combined with Eaton’s global scale and access to the broader Southeast Asian market, will enable us to grow our low-voltage electrical components business in Asia.”

HuanYu Group is a leading Chinese electrical equipment manufacturer. Founded in 1989 and headquartered in Wenzhou, China, its products are widely used across a variety of industries including, commercial and residential buildings, power grid, new energy, communication technology, transportation, and industrial manufacturing.

Eaton’s mission is to improve the quality of life and the environment through the use of power management technologies and services. We provide sustainable solutions that help our customers effectively manage electrical, hydraulic, and mechanical power – more safely, more efficiently, and more reliably. Eaton’s 2020 revenues were $17.9 billion, and we sell products to customers in more than 175 countries. We have approximately 92,000 employees. For more information, visit Eaton.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210329005357/en/

FAQ

What is the significance of Eaton's acquisition of HuanYu High Tech?

Eaton's acquisition of a 50% stake in HuanYu High Tech is significant as it allows Eaton to enhance its market presence in low-voltage electrical components across Asia-Pacific, leveraging HuanYu's product portfolio.

What percentage of HuanYu High Tech did Eaton acquire?

Eaton acquired a 50% stake in HuanYu High Tech.

Which markets will Eaton target through this acquisition?

Eaton aims to grow its low-voltage electrical components business, focusing primarily on the Southeast Asian market.

Who is HuanYu Group?

HuanYu Group is a leading Chinese electrical equipment manufacturer that specializes in low-voltage circuit breakers and contactors.