With $10 million in sales in 2000, TSP is located in Queretaro, Mexico and has been a licensee of technology from Eaton and its predecessors since 1973. TSP, an indirect subsidiary of DESC, S.A. de C.V. and Dana Corp., sells its products to original equipment manufacturers and the independent aftermarket in Mexico.

The transmission business of DESC and Dana, including TTC Transmission, TREMEC and TTSP, are not involved in this transaction.

"TSP's clutch business is well positioned in its market, and will be an excellent extension to our North American clutch operations," said Eaton Clutch Division vp and gm DeWayne Egly. "This enables us to streamline the supply of transmissions and clutches to our Mexican customers, and provides for technological integration of clutches with other drivetrain products, which will also benefit our Mexican customers."

Eaton plans to relocate the acquired assets to its newest facility in San Luis Potosi, Mexico. The company said this transition will occur as the San Luis Potosi plant becomes operational over the next several months, and that consolidation of its Mexican transmission and clutch production at the San Luis Potosi facility will provide a cost-efficient, focused approach to manufacturing from internally shared resources in Mexico.