Cooper, a leading electrical equipment supplier founded in 1833, focuses on energy efficiency for a global customer base.
Eaton, founded in 1911, makes power distribution, power quality, control and automation, power monitoring and energy management products.
The $11.8 billion transaction is expected to close at the end of 2012, at which time a two-year transition and evaluation will take place.
Until that time, there will be no decisions on changes to individual locations like Cooper Power Systems, an Eaton spokesman said.
The new company will be called Eaton Global Corporation Plc and headquartered in Dublin. Cooper shareholders will receive $39.15 per share in cash and 0.77 in ordinary shares for each Cooper share.
“This compelling combination of Eaton’s power distribution and power quality equipment and systems with Cooper’s diversified component brands, global reach and international distribution creates a game changer to serve the electrical industry,” said Alexander M. Cutler, Eaton’s current chairman and chief executive officer.. “We’re excited about bringing together two great companies to create shareholder value and continue our global growth. This combination significantly expands our ability to better serve our customers with their demands for critical energy saving technologies as they address the impact of the world’s growing energy needs.”
The combined companies would have posted historical revenues of $21.5 billion and EBITDA of $3.1 billion in 2011.