Eaton Shrinks Reliance on Auto Parts

Eaton Corp.'s proposed $11.8 billion acquisition of global electrical products maker Cooper Industries plc is taking the company further from its roots as a maker of truck axles.

After the deal is completed, Cleveland, Ohio-based Eaton expects to derive only 20% of its revenue from car and truck parts compared with 27% last year and 43% in 1999, Bloomberg News estimates. After the acquisition, electrical equipment will account for nearly 60% of Eaton's sales.

Analysts tell the news service that Eaton's stock value will rise as the company moves away from the cyclical auto business and into less volatile sectors such as equipment to illuminate buildings.