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Eaton agrees to buy hydraulics maker in China

Staff -- Industrial Distribution, 1/1/2005

Industrial products maker Eaton Corp. agreed to purchase the businesses of Winner Group Holdings Ltd., a China-based company that makes hydraulic hose fittings and adapters.

Terms of the deal were not disclosed, but it will be completed through a combination of share and asset purchases, the company said. The purchase is expected to be completed in the first quarter of 2005. According to Eaton, Winner had sales of $28 million in 2003.

Winner is based in Hong Kong, with operations in mainland China in Shanghai, Ningbo, Guangzhou and Luzhou. The firm sells products used in stationary and mobile construction equipment applications to customers throughout China.

"Winner's broad portfolio of hydraulic hose fittings and adapters is specifically suited to the Chinese market and strengthens our product range," said Craig Arnold, senior vice president and group executive for Eaton's fluid power business. "Its extensive sales network and local manufacturing operations will help us meet customer needs in the growing Chinese market."

Eaton Corp. had sales of $8.1 billion in 2003, selling fluid power systems and services for industrial, mobile and aircraft equipment; electrical systems and components for power quality, distribution and control; automotive engine air management systems and power-train controls for fuel economy; and intelligent drive-train systems for fuel economy and safety in trucks.

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