Diversified industrial manufacturer Eaton Corporation, Cleveland, OH, has agreed to buy AT Holdings Corporation, the parent of Argo-Tech Corporation, for $695 million.
Argo-Tech's aerospace business, which had sales for the fiscal year ended Oct. 28, 2006, of $206 million and EBITDA of $63 million, is a producer of aerospace engine fuel pumps and systems, airframe fuel pumps and systems, and ground fueling systems for commercial and military aerospace markets.
In 2005, Eaton made its first move into fuel systems with the acquisition of Cobham Aerospace's Fluid and Air Division. The acquisition of Argo-Tech moves Eaton into high-pressure engine fuel systems. Argo-Tech strengthens Eaton's major commercial and military aerospace platform content and significantly increases Eaton's aftermarket opportunities.
The company employs about 640 people in four locations ﾖ Cleveland, OH; Costa Mesa and Inglewood, CA.; and Tucson, AZ. Prior to the closing, AT Holdings will be reorganized to exclude its cryogenics and other non-aerospace businesses, which had sales of $22 million in 2006, and certain other assets from the transaction.
"The acquisition of Argo-Tech adds an important component to Eaton's aerospace fuel system strategy by acquiring a leading provider in engine fuel pump technology,' said Alexander M. Cutler, Eaton chairman and CEO. 'Argo-Tech will strengthen our aerospace operations by providing Eaton with a total fuel system capability, attractive aftermarket opportunities and an increased portfolio and customer base."
Eaton Corporation had 2005 sales of $11.1 billion.