Eaton Reaches Agreement to Sell Its Lighting Business

Eaton, a power management company, announced on March 2, 2020, that it had reached an agreement to sell its lighting business to Signify N.V. This move marks a significant milestone for both companies and is expected to result in a stronger strategic focus for Eaton and a path to growth for Signify.

The sale of Eaton`s lighting business includes a comprehensive portfolio of indoor and outdoor lighting solutions, including LED lamps, luminaires, controls, and connected lighting systems. The business operations of Eaton`s lighting business are mainly in Europe, the Middle East, and Africa.

The transaction is expected to close in the first quarter of 2020, subject to customary closing conditions and regulatory approvals. The terms of the agreement were not disclosed.

Eaton`s decision to sell its lighting business is part of its ongoing strategy to streamline its portfolio and focus on its core businesses. The company has been actively reshaping its portfolio in recent years, divesting non-core businesses while acquiring companies that complement its core competencies.

Signify N.V., formerly known as Philips Lighting, is a global leader in lighting products, systems, and services. The acquisition of Eaton`s lighting business aligns with Signify`s strategy of strengthening its position in the global market by expanding its portfolio of connected lighting solutions and increasing its market share.

The CEO of Signify, Eric Rondolat, said in a statement, “This acquisition will strengthen Signify`s position in the professional lighting market and reinforce our leadership in connected lighting. We look forward to welcoming Eaton`s talented lighting professionals to our team and working together to further innovate and improve the way we light up our world.”

The sale of Eaton`s lighting business to Signify is expected to create new growth opportunities for both companies. Eaton will be able to focus on its core businesses, including electrical, hydraulic, and aerospace products, while Signify will gain a stronger foothold in the global market and expand its portfolio of connected lighting solutions.

In conclusion, Eaton`s sale of its lighting business to Signify represents a significant step for both companies. The transaction is expected to lead to strategic benefits for both parties, positioning them for growth and success in the global market. As the business world continues to evolve, it is essential for companies to adapt, streamline, and focus their portfolios to remain competitive and thrive in their respective industries.