Eaton's Turkish Deal To Ramp PortfolioZacks Investmentupdated Feb 27, 2012TweetAt GET.com we maintain complete editorial integrity on our content & provide transparent & unbiased information. Companies don't pay us to include their products although we receive a compensation when you successfully apply to products from our partners. See how we make money here.At GET.com we maintain complete editorial integrity.Industrial manufacturing giant Eaton Corporation (ETN) announced its decision to acquire Istanbul-based Polimer Kauçuk Sanayi ve Pazarlama A.S. The company expects the deal to be closed during the second quarter of 2012. This Turkish company, Polimer Kauçuk Sanayi ve Pazarlama A.S, primarily engages in the manufacture of industrial and hydraulic hoses. Apart from that, its other line of businesses includes mining, manufacturing, construction, agriculture, food and beverage, oil and gas, and chemicals. Several Polimer Kauçuk's products are sold around the globe under the SEL Hose brand name. Eaton expects that this acquisition will be immediately accretive to its 2012 earnings, and hence increased its 2012 guidance by 3 cents to a range of $4.13–$4.53 per share. The company also increased its 2012 operating earnings guidance by 5 cents, in a range of $4.20–$4.60 per share, excluding acquisition integration charges. The acquisition is likely to bolster Eaton’s presence in the emerging markets and also expand its global coverage, with respect to its hose product segment. In view of Eaton’s last few deals, it is quite evident that the company is intent on diversifying its portfolio and expand its line of business by taking the inorganic route. In December last year, Eaton completed the acquisition of E.A. Pedersen Company, a manufacturer of medium voltage switchgear catering primarily to electrical utilities. This transaction will strengthen Eaton’s footprint in medium voltage assembly businesses, with the addition of utility-based power products. The company has made some significant deals in 2011. These include the acquisition of high power inverter provider, IE Power, Inc; Germany-based advanced liquid filtration solutions provider E. Begerow GmbH & Co KG, and, ACTOM Low Voltage, a motor control components, engineered electrical distribution systems and uninterruptible power supply systems manufacturer and supplier based in South Africa. As of December 31, 2011 the company had a cash balance of $385 million. We believe that the company can comfortably utilize its surplus cash balance for meeting the acquisition costs. Cleveland, Ohio-based diversified power management company Eaton Corporation itself provides an array of products to its customers. These include powertrain, truck and automotive systems, electrical components and systems, hydraulics and pneumatic systems for commercial and military use. Eaton has approximately 73,000 employees and a strong customer base in more than 150 countries. Eaton Corporation currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. The company competes with ITT Corporation (ITT) and Parker Hannifin Corporation (PH). EATON CORP (ETN): Free Stock Analysis Report To read this article on Zacks.com click here. Editorial Disclosure: Any personal views and opinions expressed by the author in this article are the author's own and do not necessarily reflect the viewpoint of GET.com. The editorial content on this page is not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author's alone, not those of the companies mentioned, and have not been reviewed, approved or otherwise endorsed by any of these entities.