The acquisition of Eaton’s Hydraulics business complements Danfoss’ strategy to improve customer value and add strength to its core businesses.
Danfoss, a Denmark-based provider of products and services used in refrigeration, air conditioning, heating, motor control, and mobile machinery, has announced its acquisition of the Hydraulics business of Eaton Corporation, an Irish multinational power management company. The acquisition is said to be part of Danfoss’ growth strategy Going Great. It also complements the company’s strategy to improve customer value and boost its core businesses. Furthermore, it is considered to be a significant milestone in the history of the company. The cash purchase price of the acquisition is over US$3.0 billion.
“Eaton believes its Hydraulics business will greatly benefit from being part of a company that has hydraulics at its core. When complete, the deal will be bringing together two talented teams having deep hydraulics expertise and knowledge. And our hydraulics team will become part of a company that’s committed to becoming a global industrial and mobile hydraulics leader. The combined business will also be benefiting distributors and customers by offering a much wider hydraulic solutions portfolio and industry-leading technology,” said Chairman and CEO of Eaton, Craig Arnold.
Eaton Hydraulics to be transferred into existing Danfoss business segment
“Today, Danfoss takes a transformational and significant step in creating a global industrial and mobile hydraulics leader. It’s a once in a lifetime opportunity to combine our geographic footprints and largely complementary portfolios. In the global industry, Eaton Hydraulics is a highly respected player, recognized for its strong brands and dedicated people. By combining the experience and knowledge of the two businesses, our customers will be benefiting from unequaled expertise from a single partner. With the agreement, Danfoss continues to invest in its core hydraulics business and digital solutions to remain a strong technology partner,” said President and CEO of Danfoss, Kim Fausing.
Eaton Hydraulics will be transferred into Danfoss Power Solutions. It will add 2019 sales of over US$2.0 billion and around 11,000 employees to this existing Danfoss business segment.