Eaton Acquires a 50 Percent Stake in Jiangsu YiNeng Electric’s Busway Business

Rhea-AI Summary

Power management company Eaton (NYSE:ETN) has acquired a 50 percent stake in Jiangsu YiNeng Electric’s busway business, which reported sales of $60 million in 2020. This acquisition is expected to enhance Eaton's power distribution and quality offerings in the Asia-Pacific region. Howard Liu, Eaton’s president for the Asia-Pacific Region, highlighted the strategic significance of combining YiNeng's local capabilities with Eaton's extensive portfolio, aiming to create tailored solutions for various industrial segments.

Positive

• Acquisition of 50% stake in Jiangsu YiNeng Electric's busway business enhances market presence in China.
• Anticipated synergies from combining YiNeng’s local expertise with Eaton's power distribution portfolio.
• Potential growth in packaged solutions catering to Asia-Pacific customer needs.

Negative

• None.

Power management company Eaton (NYSE:ETN) today announced it has completed the acquisition of a 50 percent stake in Jiangsu YiNeng Electric’s busway business, which manufactures and markets busway products in China and had sales of $60 million in 2020.

“This strategic agreement with YiNeng marks an exciting milestone for both of our companies,” said Howard Liu, president, Asia-Pacific Region, Electrical Sector and Corporate China, Eaton. “The combination of YiNeng’s busway capabilities and strong presence in China with Eaton’s broad power distribution and power quality portfolio enables us to expand packaged solutions that meet the needs of customers in the Asia-Pacific region.”

Jiangsu YiNeng Electric is a leading Chinese electrical equipment manufacturer. Founded in 2002 and headquartered in Jiangsu, China, the company serves the data center, infrastructure, commercial building, telecommunications, and industrial segments.

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 94,000 employees. For more information, visit Eaton.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210625005085/en/

FAQ

What is the significance of Eaton's acquisition of Jiangsu YiNeng Electric?

The acquisition of a 50% stake in YiNeng's busway business allows Eaton to expand its market presence in China and enhance its product offerings in the Asia-Pacific region.

How much did Jiangsu YiNeng Electric's busway business generate in sales?

Jiangsu YiNeng Electric’s busway business reported sales of $60 million in 2020.

What are the expected benefits of the acquisition for Eaton?

Eaton expects synergies from integrating YiNeng’s capabilities with its own power distribution portfolio, leading to innovative packaged solutions for customers.

When was the acquisition of Jiangsu YiNeng Electric completed?

The acquisition was announced and completed on June 25, 2021.