Eaton Corporation (ETN) has successfully closed its previously announced deal to buy the German Hydraulics company Internormen Technology Group. The company expects to significantly expand its filtration product portfolio with technically advanced products and systems for mobile, industrial hydraulic and process applications, through the acquisition of the German filtration products maker.
The source of the transaction dates back to March 14, 2011, when Eaton and Internormen Technology had entered a pact.
Based in Altlussheim, Germany, Internormen Technology has been a leader in hydraulic filtration and instrumentation for the last 40 years. The company has sales and distribution subsidiaries in emerging economies such as India, China and Brazil and the United States. Internormen’s revenue in 2010 was more than $55 million.
Management said that Internormen’s leadership position in fast growing wind power markets and a well-established presence in emerging economies strengthen Eaton’s global footprint and its regional presence in the Americas, Europe and Asia-Pacific.
Based in Cleveland, Ohio, Eaton Corporation deals in electrical components and systems for retaining power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use; and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety.
In the first quarter of 2011, Eaton Corporation continued to outperform estimates, with first quarter earnings of 84 cents coming in above the Zacks numbers as well as the year-ago comparisons, primarily due to strong end-market growth.
Going forward, the company aims to record 10% growth at its end-markets in 2011 and expects adjusted earnings to be in the range of $3.70 – $4.00 per share. The Zacks Consensus Estimate for 2011 stands at $3.90, which is within the company’s guidance range.
Eaton Corporation currently retains a Zacks #2 Rank (short-term Buy rating). The company fares better than its peers ITT Corporation (ITT) and Johnson Controls Inc. (JCI), carrying the short term Zacks #3 Rank (Hold). We maintain our long-term Outperform rating on the stock.
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