Region: Africa, Asia, Europe, International, Middle East, Saudi Arabia, The Americas, UAE
Danfoss completes USD 3.3 bn acquisition of Eaton’s hydraulics business
NORDBORG, DENMARK, 3 August 2021: Danfoss said it has officially finalised its USD 3.3 billion (approximately €3 billion) acquisition of Eaton’s hydraulics business, following confirmation of all necessary regulatory approvals and closing conditions. Making the announcement through a Press release, the company said 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.
Danfoss said mobile hydraulics has been one of its core and most successful businesses for over 50 years. The acquisition of Eaton’s hydraulics business is a vital aspect of its growth strategy, the company said. Eaton’s hydraulics business will be combined with the Danfoss Power Solutions business segment, adding approximately 10,000 employees worldwide and USD 1.8 billion (around €1.5 billion) in 2020 global sales, it said. Combining the two organisations will double the size of Danfoss Power Solutions, increasing its innovation capacity twofold, it added.
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 said. Its distribution channels have also been significantly boosted, while its local application support and geographical reach have increased considerably, it said. 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 digitalisation and electrification, it added.
Kim Fausing, President and CEO, Danfoss, 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.”
Eric Alström, President, Danfoss Power Solutions, said: “The need for technologically innovative and industry-changing hydraulic solutions is as great as ever. We’re very pleased to complete this significant investment in our core hydraulics business so we can serve our customers and partners even better than before.
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.”
Paulo Ruiz, President of the former Eaton hydraulics business, added: “This is an exciting new chapter for both of our businesses and our people, which are stronger together. The new Danfoss Power Solutions team will create a global leader in mobile and industrial hydraulics, drawing on long legacies of innovation and industry-leading expertise. The combined product portfolio and broadened global reach will better serve customers and distributors all around the world.”