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Hubbell buys Cooper utility lines

Jan. 28, 2003
Hubbell expands in utility market with Cooper acquisition

Expanding its presence in the pole-line hardware business, Hubbell Inc., Orange, Conn., agreed to acquire a package of utility products from Cooper Industries' power systems unit for $8.7 million cash.

The purchase price is subject to adjustment at closing, which is expected in about 60 days. Hubbell said it would purchase product inventories and materials, production equipment, tool and dies and related equipment. The deal doesn't include Cooper's production facility in East Stroudsburg, Pa., and real estate. According to Cooper Industries, about 140 of its employees will be affected by the plant's closure, which is expected to happen by the end of the year. Cooper will be entering into negotiations with the Union WHICH UNION???for that plant to get closing agreements for the employees, a Cooper spokesperson said.

Cooper did not separate out product line revenue for the pole-line hardware business, the spokesperson said, but the business accounted for just a small portion of Cooper's Power Systems division. "A decision was made that this was an area where we could focus our energies on other things. And we were able to identify a buyer in Hubbell," said WHO??????

Pole-line hardware products are used in the construction and maintenance of electric utility transmission and distribution lines. Hubbell, through its Power Systems segment, already manufactured pole-line hardware under the Anderson Electrical Products Inc., A.B. Chance Co., Fargo Mfg. Co. Inc., Ohio Brass Co., ?????????????? brands. The acquisition would broaden Hubbell's product offering in pole-line hardware and give it new opportunities in that market, said Tim Powers, the company's president and chief executive officer "Electric utility products are a core business for the company, and a market to which Hubbell Power Systems segment is a leading supplier.

Once completed, this transaction will broaden both our product offering and our opportunities in this important market." At press time, it was not clear how Hubbell planned to integrate the pole-line hardware business into its business.