Eaton announces definitive agreement to sell mobile agricultural hydraulic cylinder business
CLEVELAND, OHIO…Eaton Corporation (NYSE:ETN) today said it has agreed to sell its mobile agricultural hydraulic cylinder business to Hyco International, Inc., of Atlanta, in a cash transaction. The purchase price was not disclosed. The companies set a closing date for the transaction of December 31, 1999
Eaton acquired the mobile agricultural cylinder business in 1988 with the purchase of Cessna's fluid power business. The product line is sold under the names Eatonâ and Wyr-Locâ. The majority of sales are to U.S.-based manufacturers of mobile agricultural equipment, many of whom export globally.
After the acquisition of Aeroquip-Vickers earlier this year, Eaton concluded that the manufacture of agricultural cylinders was not strategic to the company's overall objectives for its hydraulics business. Eaton will continue to manufacture industrial cylinders under the Vickers brand name.
The mobile agricultural cylinders are manufactured at Eaton's plant in Hutchinson, Kansas. Approximately 70 employees in Hutchinson are involved in cylinder manufacturing. As part of the sales agreement, Eaton will continue to manufacture the cylinders while Hyco completes the transition plan.
In commenting on today's announcement, President Alexander M. Cutler said, "We are delighted to have found a buyer for the cylinder business that will continue to serve mobile agricultural equipment customers with the highest quality products. Eaton's strengths lie in developing other value-added hydraulic products on a global basis to meet the needs of our customers."
Eaton is a global manufacturer of highly engineered products that serve industrial, vehicle, construction, commercial, aerospace and semiconductor markets. Principal products include hydraulic products and fluid connectors, electrical power distribution and control equipment, truck drivetrain systems, engine components, ion implanters and a wide variety of controls. Headquartered in Cleveland, the company has 64,000 employees and 205 manufacturing sites in 25 countries around the world. Eaton's sales for 1998 were $6.6 billion. On April 9, 1999, Eaton acquired Aeroquip-Vickers, Inc., which had sales of $2.1 billion in 1998.