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

Rhea-AI Summary

Eaton (NYSE:ETN) has signed an agreement to acquire a 50% stake in Jiangsu YiNeng Electric's busway business, which had sales of $60 million in 2020. The strategic partnership aims to leverage YiNeng's strong presence in China alongside Eaton's extensive product portfolio, enhancing their offerings in the high-growth busway sector. The deal is expected to close in Q3 2021, pending regulatory approvals. Post-acquisition, the business will operate as Eaton Busway Jiangsu, further cementing Eaton's footprint in the Asia-Pacific electrical market.

Positive

• Acquisition strengthens Eaton's position in the growing busway product market.
• Expected synergies from combining Eaton's product portfolio with YiNeng's local expertise.

Negative

• None.

Power management company Eaton (NYSE:ETN) today announced it has signed an agreement to acquire 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.

“We are pleased to form this strategic relationship with YiNeng,” said Howard Liu, president, Asia-Pacific Region, Electrical Sector and Corporate China, Eaton. “YiNeng’s strong presence in China combined with Eaton’s broad product portfolio and access to Southeast Asia positions us well in the high-growth busway product category and strengthens our offerings to customers in the region.”

The transaction, which is subject to regulatory approvals and customary closing conditions, is expected to close in the third quarter of 2021. After the transaction closes, the company will do business as Eaton Busway Jiangsu.

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 92,000 employees. For more information, visit Eaton.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210426005386/en/

FAQ

What is Eaton's acquisition of YiNeng Electric's busway business?

Eaton is acquiring a 50% stake in YiNeng Electric's busway business to strengthen its market position in China.

What were the sales figures for YiNeng Electric in 2020?

YiNeng Electric reported sales of $60 million in 2020.

When is the acquisition of YiNeng Electric expected to close?

The acquisition is expected to close in the third quarter of 2021, subject to regulatory approvals.

What will the new business entity be called after the acquisition?

After the acquisition, the business will operate as Eaton Busway Jiangsu.

How does this acquisition impact Eaton's presence in Asia?

The acquisition enhances Eaton's presence in Asia by leveraging YiNeng's established market position.