CLEVELAND, OHIO…Eaton Corporation (NYSE:ETN) today said it has determined the ratio for the distribution of shares in Axcelis Technologies, Inc. (NASDAQ:ACLS), scheduled for 5 p.m. EST, December 29, 2000. The distribution will be 1.179023 shares of Axcelis for each outstanding share of Eaton common stock. For purposes of calculating the distribution ratio, Eaton had 67,847,807 shares outstanding as of the record date, December 6, 2000.
In October, the Eaton board of directors declared a stock dividend of all of the company's Axcelis common stock to Eaton shareholders of record as of 5 p.m. EST on December 6, 2000. The distribution, which will complete the spin-off of Axcelis from Eaton, will give Eaton shareholders approximately 82 percent of the outstanding Axcelis common shares.
In addition to receiving whole shares of Axcelis, Eaton shareholders will receive cash payments for fractional shares. Eaton had previously announced that it had received a ruling from the Internal Revenue Service that this stock distribution to shareholders qualifies as tax-free for U. S. federal income tax purposes. Cash received in lieu of fractional shares will be taxable.
With 1999 sales of $8.4 billion, Eaton is a global diversified industrial manufacturer of highly engineered products that serve industrial, vehicle, construction, commercial and aerospace markets. Principal products include hydraulic products and fluid connectors, electrical power distribution and control equipment, truck drivetrain systems, engine components and a wide variety of controls. The company has 64,000 employees and 200 manufacturing sites in 24 countries.
Axcelis is headquartered in Beverly, Mass., and is a leading producer of ion implantation equipment used in the fabrication of semiconductors. Axcelis also produces dry strip, photostabilization and rapid thermal processing equipment used in semiconductor manufacturing, and provides extensive aftermarket service and support, including spare parts, equipment upgrades, maintenance services and customer training.