Power management company Eaton has agreed to acquire an 82.275% controlling interest in Ulusoy Elektrik Imalat Taahhut ve Ticaret, a manufacturer of switchgear based in Ankara, Turkey, with a primary focus on medium voltage solutions for industrial and utility customers.
The purchase price for the shares is approximately $214m on a cash and debt free basis. This constitutes the entire shareholding of both privileged and ordinary shares of sellers Sait Ulusoy, Kubilay Hakki Ulusoy, Enis Ulusoy and Akgul Ulusoy, and accounts for 90.153% of the outstanding voting rights.
The Ulusoy Elektrik had sales of $126m and EBIT of $36m for the trailing 12-month period ending September 30, 2018.
Established in 1985, the company has manufacturing facilities in Turkey and Indonesia and employs approximately 780 people. The company primarily produces medium-voltage switchgear, medium-voltage distribution transformers, substation kiosks, and medium-voltage cable connection systems.
Eaton electrical sector president and chief operating officer Revathi Advaithi said: “The acquisition of Ulusoy Elektrik complements Eaton’s IEC portfolio and strengthens our ability to provide tailored medium-voltage solutions that span the full range of requirements.
“In addition, it adds a competitive, high-capability manufacturing base and provides us with additional access to the medium-voltage market in Europe, the Middle East, and Africa.”
Following customary closing conditions and regulatory approvals, the transaction is expected to close in the first half of 2019. As part of the agreement, certain unrelated businesses with expected revenue in 2018 of approximately $3m are not included in this transaction.
The company said that the final purchase price is expected to be adjusted above or below for the level of net cash delivered at closing.
In September 2017, Eaton received funding from the US Department of Energy to deploy new hydropower generation at existing non-powered dams and waterways.
With 2018 sales of $21.6bn, the company offers energy-efficient solutions that help its customers effectively manage electrical, hydraulic and mechanical power.
It has approximately 99,000 employees and sells products to customers in more than 175 countries.