Eaton Corp., the power and control systems giant, announced Monday that it would acquire Cooper Power Systems, a powerhouse in electric grid gear, catapulting the 90-year-old Eaton into a new class of smart grid competition.
Terms of the transaction announced Monday set a value of $72 per share of Cooper stock in cash and shares in the new company, for an equity value of $11.8 billion. Eaton has secured a $6.75 billion bridge financing commitment from Morgan Stanley and Citibank to finance the cash portion of the acquisition.
At the close of the transaction, which is expected in the second half of 2012, Eaton and Cooper will be combined under a new company incorporated in Ireland, where Cooper is incorporated today.The name of the new outfit is still being decided.