CLEVELAND––Diversified industrial manufacturer Eaton Corporation (NYSE:ETN) today announced it has signed an agreement to purchase the electrical division of Delta plc for £130 million ($205 million). The transaction is expected to close in early 2003, following regulatory review and the approval of Delta’s shareholders.

The electrical division of Delta had 2001 sales of £229 million. For 2001, the division generated earnings before interest, taxes, depreciation and amortization (EBITDA) of £20.7 million. Delta’s electrical division has 3,400 employees and is headquartered in the United Kingdom. Delta’s major electrical brands include MEM, Holec, Bill, Home Automation, Elek and Tabula. The Delta business will be integrated into Eaton’s Industrial and Commercial Controls segment.

"The acquisition of Delta’s electrical division will greatly strengthen Eaton’s ability to support our multinational customers in our electrical business," said Alexander M. Cutler, Eaton chairman and chief executive officer. "We will be adding well-recognized brands and distribution networks within key European and Asian markets."

Randy W. Carson, Eaton senior vice president and group executive for the Industrial and Commercial Controls segment, said, "Delta’s electrical division has a long-established customer base and a well-recognized product line in several important markets outside of North America. We look forward to adding the knowledge and experience of the people in Delta’s electrical division to Eaton’s Industrial and Commercial Controls business." EC