Eaton Corporation signs definitive agreement to sell appliance controls business to Siebe

CLEVELAND, OH.... Siebe plc and Eaton Corporation announced today the signing of a definitive agreement whereby Siebe will purchase Eaton's worldwide Appliance Controls business for $310 million. The agreement is subject to certain conditions, including normal governmental approvals.

Eaton's Appliance Controls operation, which had sales of $440 million in 1996, has 4,800 employees at 17 facilities in North America, South America, Europe, Australia and Asia. The business unit manufactures a wide variety of timers, switches, water valves, thermostats and various range controls for the world's leading appliance makers.

Today's announcement does not affect Eaton's Automotive Controls business, which serves Eaton's key vehicle components markets.

Eaton Chairman Stephen R. Hardis said, "This decision was a particularly difficult one for us. Appliance Controls has been a part of Eaton for more than three decades, and we have watched the business grow into one of the leading global suppliers of components to the appliance industry.

"It is a fact of business life in today's global markets, however, that companies must establish clear leadership positions in the markets they serve if they are to succeed. It is our judgment that, in the Electrical and Electronic Controls portion of the company, our interests are best served by focusing our resources on our other strong businesses.

"While Appliance Controls is profitable, and continues to show profit improvement, we believe it has greater value to a company such as Siebe, which is already committed to making itself a clear winner in the marketplace, and was able to recognize the worth of this excellent business," Hardis said.

Eaton has no specific plans for use of proceeds from the sale, Hardis said, but he noted that Eaton has announced a growth initiative for the company that includes reaching $10 billion in sales by the year 2000. "We believe the sale of Appliance Controls will not limit our ability to meet those goals," he said.

Siebe plc is one of the United Kingdom's largest diversified engineering groups and incorporates over 200 companies worldwide, employing more than 50,000 people. The company designs and manufactures temperature and appliance controls, electronic power controls, process automation and building control systems, and engineered industrial equipment. The company had sales of $4.8 billion for the fiscal year ended April 5, 1997.

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.

Following is a list of Eaton facilities and number of employees affected by today's announcement:

FACILITY LOCATION NUMBER OF EMPLOYEES Carol Stream, IL 178 Hanover, IL 251 West Plains, MO 236 Athens, AL 225 Troy, MI 97 Brownsville, TX, Matamoros, Mexico 555 North Manchester, IN 301 Kendallville, IN 271 Winterset, IA 174 Total North America 2,288 Thyez, France 715 Monaco 203 Gosheim, Germany 117 La Morra, Italy 179 Belluno, Italy 789 Melbourne, Australia 97 Sao Paulo, Brazil 379 Weihai, China 43 Total Non-North America 2,522 Total Worldwide 4,810 CLEVELAND, OH.... Siebe plc and Eaton Corporation announced today the signing of a definitive agreement whereby Siebe will purchase Eaton's worldwide Appliance Controls business for $310 million. The agreement is subject to certain conditions, including normal governmental approvals. Eaton's Appliance Controls operation, which had sales of $440 million in 1996, has 4,800 employees at 17 facilities in North America, South America, Europe, Australia and Asia. The business unit manufactures a wide variety of timers, switches, water valves, thermostats and various range controls for the world's leading appliance makers. Today's announcement does not affect Eaton's Automotive Controls business, which serves Eaton's key vehicle components markets. Eaton Chairman Stephen R. Hardis said, "This decision was a particularly difficult one for us. Appliance Controls has been a part of Eaton for more than three decades, and we have watched the business grow into one of the leading global suppliers of components to the appliance industry. "It is a fact of business life in today's global markets, however, that companies must establish clear leadership positions in the markets they serve if they are to succeed. It is our judgment that, in the Electrical and Electronic Controls portion of the company, our interests are best served by focusing our resources on our other strong businesses. "While Appliance Controls is profitable, and continues to show profit improvement, we believe it has greater value to a company such as Siebe, which is already committed to making itself a clear winner in the marketplace, and was able to recognize the worth of this excellent business," Hardis said. Eaton has no specific plans for use of proceeds from the sale, Hardis said, but he noted that Eaton has announced a growth initiative for the company that includes reaching $10 billion in sales by the year 2000. "We believe the sale of Appliance Controls will not limit our ability to meet those goals," he said. Siebe plc is one of the United Kingdom's largest diversified engineering groups and incorporates over 200 companies worldwide, employing more than 50,000 people. The company designs and manufactures temperature and appliance controls, electronic power controls, process automation and building control systems, and engineered industrial equipment. The company had sales of $4.8 billion for the fiscal year ended April 5, 1997. 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. Following is a list of Eaton facilities and number of employees affected by today's announcement: FACILITY LOCATION NUMBER OF EMPLOYEES Carol Stream, IL 178 Hanover, IL 251 West Plains, MO 236 Athens, AL 225 Troy, MI 97 Brownsville, TX, Matamoros, Mexico 555 North Manchester, IN 301 Kendallville, IN 271 Winterset, IA 174 Total North America 2,288 Thyez, France 715 Monaco 203 Gosheim, Germany 117 La Morra, Italy 179 Belluno, Italy 789 Melbourne, Australia 97 Sao Paulo, Brazil 379 Weihai, China 43 Total Non-North America 2,522 Total Worldwide 4,810.

 
 

 

Contact Information

Renald Romain
216-523-4736
rennyromain@eaton.com