Salt Lake-based Eaton-Kenway Inc. will be acquired by a Milwaukee-based competitor under an agreement announced Thursday.
Harnischfeger Engineers Inc., based in Milwaukee with an office in Salt Lake City, has signed an agreement with Eaton-Kenway's parent company, Eaton Corp., to acquire Eaton-Kenway for an undisclosed amount.Eaton-Kenway builds automated material management systems, including a line of storage/retrieval machines and automatic guided vehicles used in warehouses and distribution centers.
John Kuhnmuench, secretary and general counsel for Harnischfeger Engineers, would not comment on the company's plans for Eaton-Kenway and its work force, saying the deal must first receive government regulatory approvals.
"The agreement is still far from accomplished, so it would be premature to talk about what we intend to do," said Kuhn-muench. He said he expects regulatory approvals to be completed in a minimum of 30 days.
An official at Eaton-Kenway's headquarters, who asked not to be named, said most of E-K's 300 employees work at its Salt Lake headquarters, 515 East 100 South. A small number work at its manufacturing plant in Bountiful. Asked if the company knew what plans Harnischfeger had for the company, the official said, "It will be business as usual."
Eaton Corp., a multinational corporation with headquarters in Cleveland, acquired Kenway Engineering in 1978. Kenway was formed in 1964 by a small group, headed by Ken Richins, which had its roots in the aerospace industry.
Kuhnmuench said Eaton Corp. decided to sell Eaton-Kenway "because the business no longer fits into its long-term strategic plans."
In a written statement, Harnischfeger president John W. Splude said, "We are pleased to add the strength and depth of Eaton-Kenway's experience to (our) systems integration skills. Our combined company will be ready to meet the challenges facing our respective customers worldwide."
Harnischfeger is an independent, privately owned company that designs and installs Stockmaster warehouse management systems, Plantmaster factory control systems and other materials handling needs for government and commercial customers.
Kuhnmuench described the business this way: "We design and build a product similar to Eaton-Kenway's."
Harnischfeger Engineers was formerly a division of Harnischfeger Industries, a Fortune 500 manufacturing company based in Milwaukee. In November 1993, H.E. management bought the company for an undisclosed amount and took it private.
With 300 employees itself, Harnischfeger Engineers will double in size with the acquisition of Eaton-Kenway.