Eaton sells its lighting business
Eaton entered into an agreement to sell its lighting business – Cooper Lighting Solutions – to Signify N.V., the Netherlands-based company.
The sale, which is subject to regulatory and other approvals, is expected to close in the first quarter of 2020.
According to Signify, whose brand portfolio includes Philips, the acquisition is fully in line with the company's strategy to expand in attractive markets, enhancing Signify’s position in the North American market and improving the business mix. Together, the two businesses will be better positioned to benefit from the growing $12 billion professional lighting market in North America, according to the Oct. 15 announcement. The market is described as "driven by the continued conversion to LED and the increased demand for connected lighting systems and controls."
The transaction, described as a $1.4 billion cash deal, is expected to generate substantial cost synergies of more than $60 million per year, largely to be achieved in the first three years, according to Synergy.
Signify and Cooper Lighting will maintain separate front offices: sales forces, agent networks, product and brand portfolios, marketing and product development teams.
Read the full announcement here.
A trio of Eaton executives signed a letter that explained: “We are excited to become part of a company that shares our singular focus on lighting. We believe the combination of Cooper Lighting Solutions and Signify will enhance the depth and breadth of our product offerings and services. The combined business can leverage best-in-class global technology and supply chain capabilities to solve more complex customer problems through the use of light.”
The signatories were Kraig Kasler, president of Eaton’s lighting division, as well as VPs Ken Walma and Joe Melchiors.
Their statement continued: “Signify and Cooper Lighting Solutions recognize that brands, agents and channel partners are important to success in the Americas. We will run separate commercial organizations and agent channels in North America as one of several strategies to ensure future success. Signify and Cooper Lighting Solutions will keep our existing product brands intact and our business will go to market as Cooper Lighting Solutions as part of a leading global lighting company, Signify.”
The sale, which is subject to regulatory and other approvals, is expected to close in the first quarter of 2020.
According to Signify, whose brand portfolio includes Philips, the acquisition is fully in line with the company's strategy to expand in attractive markets, enhancing Signify’s position in the North American market and improving the business mix. Together, the two businesses will be better positioned to benefit from the growing $12 billion professional lighting market in North America, according to the Oct. 15 announcement. The market is described as "driven by the continued conversion to LED and the increased demand for connected lighting systems and controls."
The transaction, described as a $1.4 billion cash deal, is expected to generate substantial cost synergies of more than $60 million per year, largely to be achieved in the first three years, according to Synergy.
Signify and Cooper Lighting will maintain separate front offices: sales forces, agent networks, product and brand portfolios, marketing and product development teams.
Read the full announcement here.
A trio of Eaton executives signed a letter that explained: “We are excited to become part of a company that shares our singular focus on lighting. We believe the combination of Cooper Lighting Solutions and Signify will enhance the depth and breadth of our product offerings and services. The combined business can leverage best-in-class global technology and supply chain capabilities to solve more complex customer problems through the use of light.”
The signatories were Kraig Kasler, president of Eaton’s lighting division, as well as VPs Ken Walma and Joe Melchiors.
Their statement continued: “Signify and Cooper Lighting Solutions recognize that brands, agents and channel partners are important to success in the Americas. We will run separate commercial organizations and agent channels in North America as one of several strategies to ensure future success. Signify and Cooper Lighting Solutions will keep our existing product brands intact and our business will go to market as Cooper Lighting Solutions as part of a leading global lighting company, Signify.”