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Eaton has agreed to sell its lighting business to Signify N.V. for a cash purchase price of $1.4 billion. The decision to sell the lighting business comes after completing a comprehensive review of various potential transaction alternatives to maximize shareholder value.

Eaton's lighting business is considered one of the world’s leading providers of LED lighting and control solutions. Its broad range of innovative products and systems are designed to maximize performance and energy efficiency. The business, which had sales of $1.7 billion in 2018, serves customers in commercial, industrial, residential and municipal markets.

“Today’s announcement is another example of how we are actively managing our portfolio to create value for our shareholders,” Eaton Chairman and CEO Craig Arnold said in a statement.

The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the first quarter of 2020. Goldman, Sachs & Co. LLC, is acting as financial adviser to Eaton.

Eaton is a power management company with 2018 sales of $21.6 billion. The company has approximately 100,000 employees and sells products to customers in more than 175 countries.