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Eaton to sell fastener business to TransTechnology Corporation for $173 million
CLEVELAND, OHIO…Eaton Corporation (NYSE:ETN) and TransTechnology Corporation (NYSE:TT) today said they have signed a definitive agreement whereby Eaton will sell its Engineered Fasteners business unit to TransTechnology for $173 million cash. The two companies expect the sale to be completed by September 1, 1999.
Eaton had announced on March 25, 1999 its intent to sell its Engineered Fasteners and Fluid Power Divisions to offset, in part, the cost of the company's acquisition of Aeroquip-Vickers, Inc.
TransTechnology, headquartered in Liberty Corner, New Jersey, is a multinational manufacturer of specialty fasteners and aerospace products with more than 1,750 employees at its 12 facilities in the U. S., England, Germany and Brazil. Sales for the fiscal year ended March 31, 1999 were $228 million.
Eaton's Engineered Fastener Division, which employs 650 and had 1998 sales of $94 million, manufactures a wide variety of fastening devices for automotive, business equipment, consumer electronics and home appliance markets. The division has manufacturing facilities in Brunswick and Massillon, Ohio and Hamilton, Ontario, Canada.
In commenting on today's announcement, Eaton Corporation Chairman and Chief Executive Officer, Stephen R. Hardis, said, "Eaton's fastener business is made up of an excellent work force and leadership teams. TransTechnology and our Fastener Division have similar corporate values, and opportunities are present that will permit this business to continue to grow and prosper. We firmly believe that this transaction is in the ultimate best interest of everyone involved."
Michael J. Berthelot, TransTechnology Chief Executive Officer, said, "The Eaton Fastener Division and its well-recognized Tinnerman™ line of products will become a major component of TransTechnology. Engineered Fasteners will combine with TransTechnology's Palnut™ fastener operation in Mountainside, New Jersey to form its own Engineered Components Division, which will be headquartered in Brunswick, Ohio and will coordinate the activities of the three Engineered Fasteners facilities and the Mountainside operation.
"The combining of the Tinnerman and Palnut brand names will offer our diverse customer base a wide selection of fastener solutions and permit us to introduce a number of new products. Our entire organization is excited about the opportunities that this combination will provide to customers and employees alike," Berthelot said.
TransTechnology, the seventh largest fastener manufacturer in the United States, is also the largest manufacturer of retaining rings in the world, and a leader in the design and manufacture of heavy duty hose clamps. The company also manufactures rivets and externally threaded fasteners for the aerospace industry and specialty machined and cold headed products. TransTechnology's Aerospace Products Group is the world's leading manufacturer of sophisticated lifting and restraining products used on rescue missions by military and civilian helicopters, as well as of rods used to hold aircraft engine cowlings open.
Primary markets for TransTechnology's fastening products include heavy truck, off-road equipment, automobile, marine, civilian and military aircraft and consumer goods ranging from appliances to computers, toys, and photographic equipment. The Internet address for TransTechnology is:
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 65,000 employees and 215 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.