Eaton Corporation (ETN) said it will buy German filtration products maker Internormen Technology Group, to capitalize the markets for its hydraulics business.
Based in Altlussheim, Germany, Internormen Technology is a leader in hydraulic filtration and instrumentation for 40 years. The company has sales and distribution subsidiaries in emerging economies such as India, China and Brazil and in the United States. Internormen’s revenue in 2010 was more than $55 million.
Eaton’s management, through this acquisition, expects to significantly expand its filtration product portfolio with technically advanced products and systems for mobile, industrial hydraulic and process applications.
Management said that Internormen’s leadership position in fast growing wind power markets and a well-established presence in emerging economies strengthen Eaton’s global footprint and its regional presence in the Americas, Europe and Asia-Pacific.
Internormen Technology has been owned by the Franger family since its foundation in 1972. Following the sale of Internormen to Eaton, the sons of the founder of Internormen, Stefan and Bernhard Franger, will assume management responsibilities at Eaton keeping in tune with their leadership positions at Internormen.
Based in Cleveland, Ohio, Eaton Corporation deals in electrical components and systems for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use; and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety.
Eaton Corporation has consistently outperformed estimates in the past four quarters. The company’s fourth quarter and full-year results came in above the Zacks numbers as well as the year-ago comparisons, primarily due to strong end-market growth.
Going forward the company aims to record 8% growth at its end-markets. Based on these expectations the Zacks Consensus Estimate for 2011 and 2012 stands at $3.76 and $4.44, respectively.
Eaton Corporation currently retains a Zacks #2 Rank (short-term Buy rating). The company fares better than its peer ITT Corporation (ITT) which carries a short term Zacks #3 Rank (Hold). We maintain our long-term Outperform rating on the stock.
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