Promoting further consolidation in the electrical equipment sector

Oaklins’ team in China has advised the shareholders of Jiangsu Huineng Electric Co., Ltd. (Jiangsu Huineng) to sell 50% equity stake of Jiangsu Huineng to Eaton Corporation (Eaton), promoting yet another strategic cooperation and further consolidation in China’s electrical equipment sector, after helping Huanyu Group to obtain strategic investment from Eaton in 2021.

Jiangsu Huineng is a leading Chinese low-voltage electrical equipment manufacturer. Founded in 2007 and headquartered in Zhenjiang, China, the company manufactures and markets low-voltage circuit breakers, relays, and contactors in China. The company has strong R&D capability, and leads the market in product innovation. The company's products have wide applications, with specialty and a clear leading market position in the renewable energy sector. In 2021, Jiangsu Huineng generated revenue of 35mn USD.

 

Eaton is a leading global player in the electrical industry, with over 100 years of history. With strong sales presence in over 170 countries, Eaton generated total revenue of 19.6bn USD in 2021. Eaton entered the China market in 1993, and has grown to be one of the major players in the low-voltage electrical sector in China.

 

Through this transaction, Jiangsu Huineng expects to combine its strength in product innovation and production with Eaton’s strong sales channels in both China and oversea markets to achieve higher growth for both companies.

Oaklins HFG China understands our industry and our strategic needs. We’re very pleased to have completed this strategic leap forward in our company’s development with the help of Oaklins. Changsheng Jiang, Chairman, Jiangsu Huineng Electric

Oaklins’ team in China acted as the exclusive financial advisor to assist the shareholders of Jiangsu Huineng in this transaction. Oaklins’ team assisted the shareholders in valuation guidance, negotiations, pre-closing restructuring and other closing matters.

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Angela chen new 2
Angela Chen Shanghai, China
Managing Director
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