ETN Eaton Corp New

Industrial manufacturer Eaton Corporation (ETN) expanded its Columbian footprints by acquiring assets of C.I. ESI de Colombia S.A. (“ESI”). This acquisition will enable Eaton to penetrate more into the oil and gas, mining and industrial and commercial construction sectors of the Columbian market.

Bogota, Columbia based C.I. ESI de Colombia S.A. is a reseller of industrial electrical equipment and engineering services in the Colombian market.

Eaton has from time to time engaged in strategic, overseas acquisitions that have enhanced its global reach and allowed for inorganic expansion. In January 2011, Eaton acquired ACTOM (Pty) Ltd.'s low-voltage electrical business in South Africa, enabling the company a sound footing in the electrical South African market.

In May this year, the company sealed another deal to acquire German hydraulics company Internormen Technology Group, thereby extending its reach in filtration products segments and venturing into new emerging markets such as India, China and Brazil.

Eaton's Electrical segment is a major contributor to the company’s total sales. In the first quarter the said segment booked total sales of $1.7 billion or 44.9% of total sales, with Electrical Rest of World sales comprising $0.74 billion or 19.5% of total sales. With fresh acquisitions of electrical businesses in recent times, we expect the Electrical segment to grow further in the coming quarters.

Eaton Corporation currently retains a Zacks #2 Rank (short-term Buy rating). We maintain our long-term Outperform rating on the stock. The company competes with ITT Corporation (ITT) and Parker Hannifin Corporation (PH).

Cleveland, Ohio-based diversified power management company Eaton Corporation is a leading supplier of power accessories in the aerospace industry and has customers spanning 150 countries.

 
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