Eaton to Acquire 50% Stake in Jiangsu Huineng Electric Co., Ltd.’s Circuit Breaker Business

Rhea-AI Summary

Eaton has announced its acquisition of a 50% stake in Jiangsu Huineng Electric Co., Ltd., a Chinese manufacturer specializing in low-voltage circuit breakers. This strategic move aims to enhance Eaton's presence in the fast-growing Chinese market, focusing on sectors like renewable energy and grid modernization. With Huineng's $35 million revenue in 2021, the partnership is anticipated to leverage Eaton's global channels and expertise. The acquisition is subject to regulatory approvals and expected to finalize in Q3 2022.

Positive

• Acquisition of 50% stake in Jiangsu Huineng Electric expands Eaton's reach in China's renewable energy market.
• Huineng's $35 million revenue in 2021 indicates strong potential in the low-voltage circuit breaker segment.
• Strategic partnership expected to enhance Eaton's product offerings in renewable energy and grid modernization.

Negative

• None.

• Expands Eaton’s reach to renewable energy, commercial building, utility and industrial customers in the rapidly growing Chinese market

DUBLIN--(BUSINESS WIRE)-- Power management company Eaton (NYSE:ETN) today announced it has signed an agreement to acquire a 50% stake in the circuit breaker business of Jiangsu Huineng Electric Co., Ltd. (Huineng), which manufactures and markets low-voltage circuit breakers in China and had revenues of $35 million in 2021.

“Huineng’s application-tailored product offerings and manufacturing base in China, combined with Eaton’s expertise and global channels, will enable us to further expand to meet the needs of high-growth market segments such as renewable energy and grid modernization,” said Howard Liu, president, Asia-Pacific Region, Electrical Sector, Eaton. “We are excited for the opportunities this strategic relationship will bring.”

The transaction, which is subject to regulatory approvals and customary closing conditions, is expected to close in the third quarter of 2022.

Jiangsu Huineng Electric Co., Ltd. is a Chinese high-tech electrical equipment manufacturer with an attractive portfolio that includes breakers for renewable energy applications. Founded in 2007 and headquartered in Zhenjiang, China, its products are widely used and recognized across key markets including wind and solar and power plants.

Eaton is an intelligent power management company dedicated to improving the quality of life and protecting the environment for people everywhere. We are guided by our commitment to do business right, to operate sustainably and to help our customers manage power — today and well into the future. By capitalizing on the global growth trends of electrification and digitalization, we’re accelerating the planet’s transition to renewable energy, helping to solve the world’s most urgent power management challenges, and doing what’s best for our stakeholders and all of society.

Founded in 1911, Eaton has been listed on the NYSE for nearly a century. We reported revenues of $19.6 billion in 2021 and serve customers in more than 170 countries. For more information, visit www.eaton.com. Follow us on Twitter and LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220502005184/en/

Jennifer Tolhurst, +1 (440) 523-4006

jennifertolhurst@eaton.com

Source: Eaton

FAQ

What is the purpose of Eaton's acquisition of Jiangsu Huineng?

Eaton aims to enhance its market presence in China, focusing on renewable energy and grid modernization.

What revenue did Jiangsu Huineng Electric generate in 2021?

Jiangsu Huineng Electric reported revenues of $35 million in 2021.

When is the expected closing date for Eaton's acquisition of Huineng?

The acquisition is expected to close in the third quarter of 2022, subject to regulatory approvals.

How will the acquisition impact Eaton's business?

The acquisition is anticipated to expand Eaton's product offerings and increase its footprint in China's growing power management market.