Eaton Corporation announces $85 million non-cash charge related to recently completed Fusion Systems Corporation acquisition
CLEVELAND, OH.... Eaton Corporation today announced it will take a one-time charge of $85 million against third quarter, 1997 after-tax earnings. This non-cash charge is associated with the previously announced acquisition of Fusion Systems Corporation, a leading supplier of front-end process equipment to the semiconductor equipment industry, which was completed August 4, 1997.
Adrian T. Dillon, Eaton's Executive Vice President, Chief Financial and Planning Officer, said: "The acquisition of Fusion is being recorded using the purchase method of accounting. In this connection, Eaton commissioned an independent asset valuation study to allocate the purchase price among the various tangible and intangible assets of Fusion, including the value of purchased in-process research and development. The amount of purchased in-process R&D was determined to be $85 million, and that amount will be recorded as a one-time non-cash charge to net earnings. Goodwill associated with the acquisition of Fusion will be reduced by a corresponding amount."
Eaton Corporation is a global manufacturer of highly engineered products which serve industrial, vehicle, construction, commercial and semiconductor markets. Principal products include electrical power distribution and control equipment, truck transmissions and axles, engine components, hydraulic products, ion implanters and a wide variety of controls. Headquartered in Cleveland, the company has 55,000 employees and 155 manufacturing sites in 26 countries around the world. Sales for 1996 were $7 billion.