Eaton To Acquire Controlling Interest In Power Supplier Ulusoy Elektrik For $214 Million

The power management provider plans to leverage Ulusoy Elektrik technology to complement its own power distribution systems and gain better access to markets in EMEA.

Power management giant Eaton will acquire an 82 percent controlling interest in Turkey-based Ulusoy Elektrik to boosts its power distribution systems and its manufacturing base overseas.

Cleveland-based Eaton will purchase the shares for approximately $214 million on a cash and debt-free basis. The company did not respond to a request for comment by press time.

The large data center product and service provider, which received a 5-Star rating in CRN's 2018 Partner Program Guide, plans to leverage Ulusoy Elektrik’s technology to complement Eaton’s own IEC line of power distribution systems and boost the company’s ability to provide custom voltage solutions, according to Revathi Advaithi, president and chief operating officer, Electrical Sector.

“In addition, it adds a competitive, high-capability manufacturing base and provides us with additional access to the medium-voltage market in Europe, the Middle East and Africa,” said Advaithi in a statement.

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Founded in 1985, Ulusoy Elektrik develops power equipment for distribution networks and industrial plants with manufacturing facilities in Turkey and Indonesia. Some of the company’s key products include medium-voltage switchgear, medium-voltage distribution transformers, substation kiosks, and medium-voltage cable connection systems. It exports products to over 70 counties in four continents.

Ulusoy Elektrik has approximately 780 employees, including more than 100 engineers, with sales for the trailing 12 months totaling roughly $126 million, according to a release. The company has a market cap of $1.26 billion as of Friday.

Ulusoy Elektrik shares are down 4 percent to $15.71 per share Friday morning. Eaton shares are flat at $76.25 per share.

Eaton’s offerings help customers manage electrical, hydraulic and mechanical power more efficiently. With a market cap of $33 billion, Eaton has nearly 100,000 employees worldwide and sells products to customers in more than 175 counties.

On Jan. 31, Eaton reported fourth-quarter sales of $5.5 billion, up 5 percent year over year. For the full year of 2018, sales hit $21.6 billion, an increase of 6 percent compared with 2017.

Eaton is expecting to close its Ulusoy Elektrik transaction in the first half of 2019.