Eaton purchases Ann Arbor-based G.T. Products, Inc.

Tue Feb 17, 1998 -

CLEVELAND, OHIO ... Eaton Corporation today said it has purchased G.T. Products, Inc., a privately-owned company located in Ann Arbor, Michigan that manufactures automotive fuel system components. The price was not disclosed.

G.T. Products, which has 500 employees, had sales of $53 million last year and projects 1998 sales to be $83 million. The company is a leader in the development and manufacture of fuel system components that regulate fuel flow and vapor emissions in fuel tanks, particularly during refueling. Its principal customers are Ford, Chrysler and General Motors.

"G.T. Products is a company with an industry-wide reputation for product quality and performance," said Robert J. McCloskey, Eaton Senior Vice President-Hydraulics and Automotive Controls. "We are extremely pleased to have it become part of Eaton."

"The company has an excellent leadership team and is an innovator in the development of fuel emission technologies. This is an area that will become increasingly important as the automotive industry faces the more stringent federal emissions requirements that are scheduled to begin to be implemented in 1999," McCloskey said.

Jay E. Hartford, G.T. Products' President and Chief Operating Officer, said: "We are very pleased to be joining the Eaton team. This agreement sets the foundation for the future well-being of our employees, who are our greatest asset. In terms of business culture, the two companies are very compatible, and our products ideally complement each other. We expect Eaton's global presence to provide us with significant market opportunities as we go forward. We view the future with great promise."

G.T.'s primary products include on-board refueling vapor recovery (ORVR) valves, valves designed to prevent leakage in rollover accidents, check valves, fuel level sensors and pressure control valves. The company sells more than 25 million vapor vent valves annually.

The newly-developed ORVR system consists of a series of valves and sensors specifically designed to contain fuel vapors within the vehicle emission control system, making vehicles more environmentally friendly and in compliance with the latest clean air standards.

ORVR valves will be required on all passenger cars manufactured in the United States by model year 2000, all light trucks by model year 2003 and all other light vehicles by 2006. Eaton said it also anticipates stricter fuel emission requirements in Europe in the future, and that its emission control system will be able to meet those requirements.

Eaton said its existing line of emission valve products, when combined with G.T.’s product offerings, will give it a significant engine management capability to offer to worldwide automotive customers. "G.T.'s components fill in key portions of Eaton's engine/air fuel system offerings. Engine management systems will become increasingly important to our North American customers, as well the global OEMs we serve," McCloskey said. "We see this as a significant area of future growth potential for Eaton."

Eaton Corporation is a global manufacturer of highly engineered products that serve industrial, vehicle, construction, commercial and semiconductor markets. Principal products include electrical power distribution and control equipment, truck drivetrain systems, engine components, hydraulic products, ion implanters and a wide variety of controls. Headquartered in Cleveland, the company has 49,000 employees and 145 manufacturing sites in 28 countries around the world. Sales for 1997 were $7.6 billion.




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Renald Romain


William Hartman, vice president, Investor Relations