New York-listed Eaton in talks to buy Turkey's Ulusoy Elektrik for around $300 mln -sources

Ulusoy Elektrik Imalat Taahhut ve Ticaret

28/11/2018 13:02

By Ebru Tuncay
    ISTANBUL, Nov 28 (Reuters) - U.S.-listed power management
company Eaton Corporation  ETN.N  is in advanced talks to buy
Turkey's Ulusoy Elektrik  ULUSE.IS  for around $300 million, two
sources with knowledge of the deal told Reuters on Wednesday.
    The transaction would see Eaton acquire more than 80 percent
of the switchgear maker from members of the founding Ulusoy
family, and launch a tender offer to minority shareholders for
the remaining stake, the sources said.
    A representative for Eaton, which is listed on the New York
Stock Exchange and headquartered in Dublin, Ireland, declined to
comment, as did a representative for Ulusoy.
    The deal is expected to be signed in the coming days and
follows several months of negotiations, the sources said.  
    "The value of the deal is around $300 million," one of the
sources said. The sources declined to be identified because the
information is not yet public.
    Ulusoy Elektrik, which makes switchgears used in power
distribution systems and the overhead line equipment used in
railways, has production facilities in Turkey, Indonesia and
Algeria.
    It recorded a net profit of 51.3 million lira ($10
million)and an EBITDA margin of 30.7 percent in the third
quarter, according to its website.
($1 = 5.2510 liras)

 (Additional reporting Harry Brumpton in New York
Writing by Ezgi Erkoyun
Editing by David Dolan and Daren Butler)
 ((ezgi.erkoyun@thomsonreuters.com; +90-212-350 7051; Reuters
Messaging: ezgi.erkoyun.thomsonreuters.com@reuters.net;))