Eaton CEO denies report that automotive segment is for sale

Adam Rubenfire
AUTOMOTIVE NEWS

Published: June 14, 2013 3:25 pm ET
Updated: June 14, 2013 3:27 pm ET

Related to this story

Topics Automotive, Mergers & Acquisitions

CHICAGO — Engine supplier Eaton Corp.'s top executive strongly denied a report that the company is considering a sale of its automotive business.

"We are not, and have not been, in the process of discussions to sell our automotive business," Eaton Chairman and CEO Alexander Cutler said recently at the Deutsche Bank Global Industrials and Basic Materials Conference in Chicago.

On June 10, Bloomberg reported that Eaton was "weighing" a sale of its auto parts business to focus on its growing power and lighting operations, citing people with knowledge of the matter. Two sources told Bloomberg that managers at Eaton were in private talks about searching for a buyer.

Sources told Bloomberg that Eaton predicted that the automotive business would be an easy sell because of the unit's potential for growth. They said strong U.S. light-vehicle sales were also an incentive to consider selling off the business.

Last November, Eaton acquired Cooper Industries P.L.C., an electrical component manufacturer, for $13 billion. Since then, Culter said he has been frequently asked whether Eaton is leaving the auto industry.

"I've answered this question repeatedly since we did the acquisition of Cooper," Cutler said at the conference. "Our vehicle business is a very important part of Eaton. It is a very strong franchise."

Cutler also said Eaton's automotive segment is a lucrative part of the company's operations. Bloomberg, in its report, said the unit has a potential value of $1 billion.

Eaton's automotive business includes plastic and rubber under-the-hood parts.


Comments

Eaton CEO denies report that automotive segment is for sale

Adam Rubenfire
AUTOMOTIVE NEWS

Published: June 14, 2013 3:25 pm ET
Updated: June 14, 2013 3:27 pm ET

Post Your Comments


Back to story


More stories

Image

Plastic Omnium makes China investment push

February 26, 2015 4:35 pm ET

Three of the six new plants that automotive molder Plastic Omnium SA plans this year will be in China, part of a broader push it’s making in...    More

Image

Ferro acquires TherMark Holdings for $5.5 million

February 26, 2015 12:15 pm ET

Ferro Corp. said it acquired privately held TherMark Holdings Inc., a laser marking technology company, for $5.5 million in cash.    More

Image

Serbia puts Krušik-Plastika up for sale

February 26, 2015 11:39 am ET

The Serbian Privatization Agency has launched the privatization process for local plastics maker Krušik-Plastika. The agency says it is...    More

Image

3i to sell specialty chemicals company Azelis to Apax Partners

February 26, 2015 11:36 am ET

Azelis Holding SA, the specialty chemicals distributor, is being sold by its private equity owners 3i Group plc to another private investment outfit, ...    More

Image

Amut buys Dolci and Bielloni

February 25, 2015 3:41 pm ET

Amut SpA, the Novara, Italy-based maker of extruders, thermoforming machines and plastics recycling equipment, has acquired the Italian company that m...    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events