CLEVELAND - Eaton Corp. of Cleveland has agreed to pay $1.7 billion to acquire Aeroquip-Vickers of Maumee, Ohio, creating the world's second-largest hydraulics business.
The acquisition will leave Eaton second only to Parker Hannifin Corp. of Cleveland as a maker of hydraulics. Aeroquip-Vickers' devices include hydraulic pumps, electric motors and electronic controls. Pro forma revenues for Eaton will jump to $8.7 billion from $6.63 billion last year.
Eaton is expected to borrow to complete the acquisition. 'We basically are borrowing against our future cash flow,' Eaton CEO Stephen Hardis told Bloomberg News Service.
Eaton's new customers from the deal are expected to include Boeing Co., Ford Motor Co. and Deere & Co.
The companies will employ about 64,500 workers after the combination.