Eaton to separate its Mobility Group into independent entity

The Securities and Exchange Commission has approved Eaton’s plan to separate its lighting business, creating two independent, publicly traded companies. This move is aimed at enhancing shareholder value and giving each business the focus needed to drive growth in their respective markets.

Eaton, a multinational power management company, announced that the separation is expected to be completed in a tax-free manner for U.S. shareholders. The decision to split the company comes after a thorough strategic review to ensure that both entities are well-positioned for success.

The lighting business, which generates approximately $1.7 billion in annual sales, will become a standalone company focused on delivering innovative lighting solutions to customers around the world. Eaton believes that this separation will enable the lighting business to better serve its customers, invest in new technologies, and pursue growth opportunities in the rapidly evolving lighting industry.

The remaining company, which will retain Eaton’s existing power management portfolio, is expected to continue driving value for shareholders through its diverse range of products and solutions. With a strong focus on sustainability and energy efficiency, this business is well-positioned to capitalize on the growing demand for environmentally friendly technologies.

“We believe that separating our lighting business will create two strong and independent companies, each with a clear strategic focus and the flexibility to pursue their own growth initiatives,” said Craig Arnold, Eaton’s chairman and CEO. “This move will enable both businesses to better serve their customers, compete more effectively in their respective markets, and create long-term value for shareholders.”

The separation is expected to be completed by the end of 2023, subject to customary closing conditions and regulatory approvals. Eaton will provide additional details on the transaction as they become available, including information on the leadership teams of both companies and their respective headquarters locations.

Overall, Eaton’s decision to separate its lighting business reflects its commitment to driving shareholder value and positioning its businesses for long-term success. By creating two independent companies with distinct strategic focuses, Eaton is taking a proactive approach to meeting the evolving needs of its customers and driving growth in an increasingly competitive marketplace.