Power management company Eaton (NYSE:ETN) today announced it has signed an agreement to acquire a 50 percent stake in HuanYu High Tech, a subsidiary of HuanYu Group that manufactures and markets low-voltage circuit breakers and contactors in China, and throughout the Asia-Pacific region. HuanYu High Tech had 2019 sales of $106 million and has production operations in Wenzhou, China.
“We are very pleased to establish this partnership with HuanYu Group,” said Howard Liu, president, Asia-Pacific Region, Electrical Sector and Corporate China, Eaton. “HuanYu High Tech’s strong product portfolio and manufacturing capabilities, combined with Eaton’s global scale and access to the broader Southeast Asian market, opens up many exciting opportunities for us to grow our business in Asia.”
The transaction, which is subject to regulatory approvals and customary closing conditions, is expected to close in the second quarter of 2021.
HuanYu Group is a leading Chinese electrical equipment manufacturer. Founded in 1989 and headquartered in Wenzhou, China, its products are widely used across a variety of industries, including power grid, new energy, communication technology, chemicals, metal smelting, industrial manufacturing, medical and pharmaceutical, transportation, and commercial building.
Eaton’s mission is to improve the quality of life and the environment through the use of power management technologies and services. We provide sustainable solutions that help our customers effectively manage electrical, hydraulic, and mechanical power – more safely, more efficiently, and more reliably. Eaton’s 2019 revenues were $21.4 billion, and we sell products to customers in more than 175 countries. We have approximately 92,000 employees. For more information, visit Eaton.com.