In huge news in fluid power, and especially the mobile hydraulics world, Danfoss announced that it has entered into an agreement to acquire Eaton’s Hydraulics business for a cash purchase price of US$3.3 billion (approximately €3.0 billion).
Besides increasing the size of Danfoss by about one-third, it also opens up the industrial hydraulics markets for Danfoss where it has not been a major player. Eaton is retaining the Filtration and Golf Grip businesses currently reported in the company’s Hydraulics segment.
The business will be transferred into the existing Danfoss business segment, Danfoss Power Solutions, adding approximately 11,000 employees and 2019 sales of US$2.2 billion (€ 2.0 billion) to the business segment, which will double the hydraulics business. Danfoss today has approximately 28,000 employees and 2019 sales of $US 7.0 billion USD (€6.3 billion). Accordingly, with this transaction, Danfoss will increase its size by one-third.
“Hydraulics is our core, and we have for years strengthened our Power Solutions business through high customer focus, as well as through significant investments in technology leadership. I believe our customers will benefit from combining these two businesses into a full-line hydraulics player dedicated to innovation and with a broad offering of products, robust distribution channels and tremendous geographic reach,” says Eric Alström, president of Danfoss Power Solutions.
By combining the knowledge and experience of the two businesses, our customers will benefit from unmatched expertise from a single partner. With this agreement, we continue to invest in our core hydraulics business and digital solutions to stay a strong technology partner,” says Kim Fausing, Danfoss president and CEO.
“We believe Eaton’s Hydraulics business will benefit greatly from being part of a comp
any that has hydraulics at its core,” says Craig Arnold, Eaton chairman and CEO. “When complete, this deal will bring together two talented teams with deep hydraulics knowledge and expertise. And Eaton’s hydraulics team will be part of a company that is committed to becoming a global leader in mobile and industrial hydraulics. The combined business will also benefit customers and distributors by offering industry-leading technology and a much broader portfolio of hydraulic solutions.”
The transaction is subject to customary closing conditions and regulatory approvals and is expected to close by the end of the year.