Global technology leader in electrical components, Eaton Corporation plc (ETN) announced the acquisition of Oxalis Group Ltd. The terms of the deal were undisclosed.
Founded in 2009, Oxalis Group initially entered the market as a provider of portable lighting systems to the defense and aviation industries. The company currently has a big name as a developer and marketer of telecommunications systems and solutions including closed-circuit TV cameras, alarm systems and other such electrical products. These are specialized products for hazardous areas and marine and industrial communication market.
Eaton’s current reportable segments are: Electrical Products, Electrical Systems and Services, Hydraulics, Aerospace and Vehicle. This acquisition will come as a boost to the company’s Electrical Systems and Services segment and more specifically to its hazardous area communications solutions business.
Hazardous area solutions provide an extensive range of innovative and integrated signaling, communication and surveillance systems specially developed for unsafe and harsh atmospheres.
The Eaton management deemed the transaction as accretive to its long-term strategy of providing innovative solutions to its customers.
Eaton’s Electrical Systems and Services segment recorded revenue of $1,655 million in the third quarter of 2014, up nearly 1% from the prior-year figure due to a 3% rise in bookings.
Eaton is also investing substantially in R&D activities to modernize existing systems and maintain its standing in the global market. The company invested $163 million in the third quarter of 2014.
Zacks Rank
Eaton Corporation currently has a Zacks Rank #4 (Sell). Better-ranked stocks in the same industry include CUI Global, Inc. (CUI),Pioneer Power Solutions, Inc. (PPSI) and Regal Beloit Corp. (RBC). All these stocks currently carry a Zacks Rank #2 (Buy).
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