Eaton has signed an agreement to acquire a 50% stake in HuanYu High Tech, a subsidiary of HuanYu Group that manufactures and supplies low voltage circuit breakers and contactors in China, and throughout the Asia-Pacific region. HuanYu High Tech had 2019 sales of USD 106 million and has production operations in Wenzhou, China. The deal is expected to come to fruition in the second quarter of 2021.

HuanYu High Tech’s broad product portfolio and manufacturing capabilities, combined with Eaton’s global scale and access to the broader Southeast Asian market, opens up many exciting opportunities for it to grow its business in Asia.

This is the 5th M&A in the switchgear market by Eaton in the last 2 years; the highest by any leading OEM. Interestingly, almost all of these acquisitions or joint ventures were concentrated in Asia. This can be attributed to Eaton’s goal of expanding inorganically in low cost manufacturing hubs within Asia such as China and Turkey. It not only helps them in becoming cost competitive but also results in expanding their footprint within Asia.

The 5 acquisitions by Eaton in the switchgear market from 2019-2020 are listed below:
1) HuanYu High Tech – 50% stake in low voltage circuit breakers and contactors business in China – 2020
2) EMAS – a joint venture to supply low and medium voltage switchgear in Egypt – 2020
3) Abunayyan Holding – 50% stake in low and medium voltage switchgear in the Middle East – 2020
4) Innovative Switchgear Solutions (ISG) – stake in the medium voltage switchgear business in the USA – 2019
5) Ulusoy Elektrik – 82.27% controlling share of the company held by Eaton in Turkey – 2019 Link to the news: https://www.eaton.com/us/en-us/company/news-insights/news-releases/2020/eaton-to-acquire-a-50-percent-stake-in-huanyu-high-tech.html?utm_source=linkedin_eaton&utm_medium=social&utm_campaign=corp_comm&utm_content=news&utm_target=global