Cooper Power Systems is a subsidiary of Cooper Industries plc.
Minneapolis-based Cargill currently manufactures the patented FR3 renewable dielectric fluid made from vegetable oil that is used in a wide range of applications for transformers and other electrical equipment, benefitting performance, safety, and the environment.
"Having pioneered the natural ester transformer oil market, Cooper Power Systems has significant practical experience with the performance and sustainability advantages of FR3," said Mark Thurman, president of Cooper Power Systems. "We expect this market to continue to experience extremely strong growth. We intend to remain at the forefront of innovative engineering design that utilizes these advantages moving forward."
"We have a proven track record of manufacturing FR3 fluid as a supplier to Cooper Power Systems," said Kurtis Miller, president of Cargill Industrial Oils & Lubricants (IOL). "Now, as a marketer and manufacturer, we will focus on growing the business with other customers seeking a high-performance, renewable fluid. With expertise in the chemistry and applications of renewable oils, and as an independent supplier with world class supply chain capabilities, we will work closely with electrical utility and transformer customers to increase usage of natural, ester-based FR3 fluid."
"Cooper Power Systems remains committed to manufacturing innovative power systems solutions that strengthen the grid and have a favorable environmental impact," Thurman said, "We are pleased to complete this transaction with Cargill. It is a natural progression for the FR3 fluid business that will allow each company to leverage their core strengths to better serve our valued utility customers and the industry."
Financial terms of the acquisition were not disclosed.
Cooper spokeswoman Judy Simms-Brown declined to comment on the financial impact on Cooper or the number of employees affected. The affected employees are mostly in sales and marketing, and have all accepted positions with Cargill.
“I think it’ll be business as usual,” she said. “Cargill has been producing our FR3 for us exclusively since 2004, so we will still fill our transformers with FR3 and it should not have any effect. It allows us to get out of the middle so Cargill can sell to transformer manufacturers.”