Danfoss acquires Eaton’s hydraulics business
Danfoss has officially completed its US$3.3 billion (approximately €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 itself as a global leader in mobile and industrial hydraulics,” the company said.
Mobile hydraulics has been one of Danfoss’ core and most successful businesses for over 50 years. The company called the acquisition as a “vital aspect” of its growth strategy. Eaton’s hydraulics business will be combined with the Danfoss Power Solutions business segment, adding approximately 10,000 employees worldwide and US$1.8 billion (around €1.5 billion) in 2020 global sales. Combining the two organizations will double the size of Danfoss Power Solutions, increasing its innovation capacity twofold, it said.
Commenting on the acquisition Danfoss President and CEO Kim Fausing said: “This is a great day for Danfoss as we welcome 10,000 new colleagues into the organization and create a global leader in mobile and industrial hydraulics. By combining the knowledge and experience of the two strong 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.”
An official statement said: “The strengthened Danfoss Power Solutions will have the broadest 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 distribution channels have also been significantly boosted, while its local application support and geographical reach have increased considerably. All of these benefits will enable Danfoss Power Solutions to become an even stronger technology partner for existing and new customers, plus take the lead in digitalization and electrification.”