Eaton to purchase industrial filtration business from Hayward Industries




CLEVELAND ... Diversified industrial manufacturer Eaton Corporation (NYSE:ETN) today announced it has reached an agreement with Hayward Industries, Inc. to purchase its industrial filtration business. Terms were not disclosed. The transaction is expected to close in the third quarter of 2005.

Hayward Filtration produces filtration systems for industrial and commercial customers worldwide. It is a global leader in liquid, high-purity bag filtration systems, marketed under the Hayward FiltrationTM global brand name. Its primary markets include general industrial, petro-chemical, pharmaceutical, food and beverage, power utilities, marine and water.

Hayward's industrial filtration business had sales of about $100 million over the last 12 months, and employs about 530 people worldwide. It is headquartered in Elizabeth, N.J., and operates five manufacturing facilities in the United States, Belgium, Germany, China and Brazil.

"As a leader in the industrial filtration market, Hayward represents a natural extension of Eaton's fluid power business," said Alexander M. Cutler, Eaton chairman and chief executive officer. "Hayward Filtration offers highly engineered products with a strong base of recurring sales. Hayward has enjoyed attractive profitability and returns, and we expect this acquisition to be immediately accretive to Eaton's earnings."

Hayward Filtration is a division of Hayward Industries, Inc., which is a privately held manufacturer of swimming pool equipment, industrial filtration and flow control products.

Eaton Corporation is a diversified industrial manufacturer with 2004 sales of $9.8 billion. Eaton is a global leader in electrical systems and components for power quality, distribution and control; fluid power systems and services for industrial, mobile and aircraft equipment; intelligent truck drivetrain systems for safety and fuel economy; and automotive engine air management systems, powertrain solutions and specialty controls for performance, fuel economy and safety. Eaton has 56,000 employees and sells products to customers in more than 125 countries.

This news release contains forward-looking statements concerning an agreement to acquire the industrial filtration business of Hayward Industries, Inc. These statements should be used with caution as they are subject to various risks and uncertainties, many of which are outside the company's control. Factors that could cause actual results to differ materially from those in the forward-looking statements include adverse regulatory decisions, failure to satisfy closing conditions, and unanticipated changes in the markets for the filtration business or in the costs of its products. We do not assume any obligation to update these forward-looking statements.


Contact Information

William Hartman, vice president, Investor Relations

Gary Klasen, director, Media Relations