Eaton buys Delta`s electrical business

The US industrial conglomerate Eaton is buying Delta plc`s electrical division for £130m. The division, which includes the MEM, Bill switchgear and Holec brands, employs 3,400 people and generated sales worth £229m in 2001. It will be integrated into Eaton`s Industrial and Commercial Controls business, which includes Cutler-Hammer.

Eaton chief executive Alexander Cutler says that the acquisition "will greatly strengthen Eaton`s ability to support our multinational customers". It will also add well-known brands and distribution networks in Europe and Asia.

Delta`s electrical division is based and Birmingham and has plants in the UK, the Netherlands and Malaysia. Its sale represents the conclusion of a major divestment programme by Delta which also included selling off its cables and materials businesses. The proceeds will be used to repay borrowings and to invest in Delta`s continuing businesses in the fields of speciality chemicals and industrial supplies.

In a separate deal, Eaton has paid $6m for Commonwealth Sprague Capacitor, a supplier of low- and medium-voltage power factor correction systems and harmonic filters, based in Massachussetts, US. The acquisition will expand Eaton`s activities in the power quality and energy management sectors. Commonwealth Sprague`s power systems sales during 2002 amounted to around $6m.