Liu Minxia

U.S. diversified industrial manufacturer Eaton Corp. announced Wednesday that it had acquired a 91 percent stake in Phoenixtec Power Co., a Taiwan power supply products manufacturer that has its main production base in Shenzhen.

Eaton Corp. said it expected to acquire the remaining 9 percent stake in Phoenixtec Power and the total purchase price would be US$568 million.

Phoenixtec Power, whose sales reached US$495 million last year, has plants in Shenzhen and Taiwan and employs roughly 5,800 people. In 1992, the company opened its Shenzhen factory, which now has more than 4,000 employees.

“This acquisition exhibits the successful expansion of Eaton in the world, especially in the Chinese and Asian markets. Phoenixtec will provide Eaton with an important manufacturing and research and development base of power quality equipment and systems,” James W. McGill, president of Eaton’s Asia-Pacific branch, said at a press conference Wednesday in Shenzhen.

Eaton’s management added that the distribution networks and manufacturing facilities of Phoenixtec Power would help increase Eaton’s competitive position in the market.

Eaton predicted that 2008 sales would grow by 25 percent overall to US$16 billion from US$13 billion last year.

Phoenixtec Power manufactures single and three-phase uninterruptible power supply (UPS) systems that are sold globally. It has leading positions in UPS markets, particularly in China, Southeast Asia and Eastern Europe.

The deal is one of a pair of recent acquisitions of US$2.8 billion by Eaton, which will significantly expand its global footprint.

Eaton agreed to buy German commercial and residential electrical components manufacturer Moeller Group for US$2.23 billion in December.