Danfoss to acquire Eaton’s hydraulics business
Industry leaders say division will be better off with a company that focuses on fluid power.
Danfoss announced it has agreed to acquire Eaton’s Hydraulics business for a cash purchase price of US3.3 billion (approximately EUR3.0 billion). The company says the acquisition is in line with a strategy to strengthen its core businesses.
“Today, we take a significant and transformational step in creating a global leader in mobile and industrial hydraulics,” said Kim Fausing, Danfoss President and CEO. “It is a once-in-a-lifetime opportunity to combine our largely complementary portfolios and geographic footprints. Eaton Hydraulics is a highly respected player in the global industry, recognized for its dedicated people and strong brands. 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.”
“We believe Eaton’s Hydraulics business will benefit greatly from being part of a company that has hydraulics at its core,” said 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.”
Eaton Hydraulics provides products for customers in markets such as agriculture, construction, and in industrial market segments. The business will be transferred into the existing Danfoss business segment, Danfoss Power Solutions, adding approximately 11,000 employees and 2019 sales of US2.2 billion ( EUR2.0 billion) to the business segment, which will double the hydraulics business. Danfoss currently has approximately 28,000 employees and 2019 sales of US7.0 billion (EUR6.3 billion). Accordingly, with this transaction, Danfoss will increase its size by one-third.