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 Mergers & Acquisitions, Automotive

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

Sipa buys Automa's PET bottle machinery business

November 28, 2014 10:02 am ET

Sipa SpA has acquired the injection-stretch-blow molding (ISBM) equipment business of Automa SpA. No transaction price was disclosed in the...    More

Image

RPC Group buying Iceland's Promens

November 27, 2014 8:46 am ET

In a major acquisition that combines two rigid packaging companies with international footprints, RPC Group plc has signed a 399 million euro ($497...    More

Image

Huhtamäki selling film division

November 26, 2014 2:10 pm ET

Private equity firm Deutsche Beteiligungs AG (DBAG) will acquire the film business of Finland-based plastics packaging group Huhtamäki Oyj for 141...    More

Image

Visteon in talks to sell its stake in Halla Visteon Climate Control JV

November 26, 2014 9:07 am ET

Visteon Corp. confirmed this morning that it is in discussions with a private equity firm to sell its stake in South Korean joint venture Halla...    More

Image

Deal adds U.K. plant to DelStar

November 25, 2014 12:47 pm ET

Schweitzer-Mauduit International Inc. (SWM) is acquiring certain assets from the advanced wound management division of London-based Smith & Nephew plc...    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

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

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

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

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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events