Danfoss has finalised its US$3.3 billion acquisition of Eaton’s hydraulics business, following confirmation of all necessary regulatory approvals and closing conditions. The move will see the Danfoss Group grow in size by a third, and establish its position in mobile and industrial hydraulics.
Mobile hydraulics has been one of Danfoss’ core businesses for over 50 years. The acquisition of Eaton’s hydraulics business is a vital aspect of Danfoss growth strategy. Eaton’s hydraulics business will be combined with the Danfoss Power Solutions business segment, adding approximately 10,000 employees worldwide and $1.8 billion in 2020 global sales. Combining the two organisations is expected to double the size of Danfoss Power Solutions, increasing its innovation capacity twofold.
Kim Fausing, president and CEO at Danfoss, commented: “By combining the knowledge and experience of the two businesses and great teams, our customers will receive an unmatched level of service and expertise from a single partner. We will continue our significant investments to stay on the forefront of technology leadership and provide solutions that improve productivity and reduce emissions to meet the requirements of the future.”
The strengthened Danfoss Power Solutions will have a selection of mobile and industrial hydraulics products and solutions available on the market, with the full line offering including fluid conveyance systems. The company’s distributed channels have also been enhanced, while its local application support and geographical reach have increased considerably.
Eric Alström, president of Danfoss Power Solutions, added: “Combining the two robust businesses represents a perfect match and provides countless opportunities, such as increasing our engineering expertise and capabilities, doubling our global application support and extending the value of our Application Development Centers and digital design tools. Adding fluid conveyance and industrial applications are other assets gained through this transaction.”