Industrial manufacturing giant Eaton Corporation ( ETN - Analyst Report ) has completed acquisition of a unit of Gycom Group based in Stockholm. The acquired unit engages in low-voltage power distribution and the supply of control and automation components in the Nordic countries, primarily Sweden, Denmark and Finland.

Per the agreement, Eaton will function in sync until October 2012 with Gycom providing operational assistance. Subsequent to the transition period, both the companies will operate independently effective November, 2012.

As both the companies have collaborated for a long time, we believe that the acquisition will be accretive to its forthcoming financial performance and will enable Eaton to strengthen its Scandinavian operations.

In view of Eaton’s last few acquisitions, it is quite evident that the company is intent on diversifying its portfolio and expanding its line of businesses as well as global footprint, particularly in Europe, Middle East and Africa (“EMEA”) and the Asia-Pacific region by taking the inorganic route.

Recently, Eaton completed the acquisition of a Turkish company Polimer Kauçuk Sanayi ve Pazarlama A.S, a manufacturer of industrial and hydraulic hoses. This transaction will bolster Eaton’s presence in the emerging markets and also expand its global coverage, with respect to its hose product segment.

Eaton has already inked some significant deals in this fiscal. These include the acquisition of Irish electrical equipment supplier Cooper Industries plc. (CBE), and South Korean track drive motors manufacturer Jeil Hydraulics Co., Ltd.

As of March 31, 2012, the company had a cash balance of $367 million. We believe that Eaton’s strong cash position enables it to pursue a steady inorganic growth strategy.

Cleveland, Ohio-based Eaton Corporation provides an array of products: powertrain, truck and automotive systems, electrical components and systems, hydraulics and pneumatic systems for commercial and military use.

Eaton Corporation currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.