Cutler-Hammer and Caterpillar Join Forces

Eaton Corp., Cleveland, and Caterpillar Inc., Peoria, Ill., formed a joint venture to provide electrical distribution switching products. Annual revenues are expected to exceed $100 million in the next few years.

The companies said Eaton would own 51 percent of the joint venture, with Caterpillar holding the remaining 49 percent. Eaton and Caterpillar said the product lines for the joint venture would include paralleling switchgear and automatic transfer switches used for emergency or prime power applications for a wide range of facilities, ranging from commercial and industrial facilities to utility and generation installations.

The Eaton/Caterpillar joint venture will operate under the name Intelligent Switchgear Organization LLC and will be based in Alpharetta, Ga.

The product line will carry the Cat brand, and it will sell its products exclusively through the Caterpillar dealer network in North America, with plans to expand to the global network in 2004.

“Maintaining continuity of power during an outage or peak demand time is critical to our customers,” said Randy Carson, Eaton senior vice president and group executive for Eaton’s Cutler-Hammer Group. “This total systems approach offers a single source for design, product support and customer service. Seamless integration of all elements means maximum customer value and assures our customers a quality product and the highest level of long-term, local product support.”

The North American markets to be served by the joint venture are approximately $500 million, with substantial growth expected over the next several years. It is anticipated that the joint venture will be able to capture a significant share of that market, and accordingly, the annual revenues within the next two to three years are expected to be in excess of $100 million.