Danfoss finalizes Eaton hydraulics deal
By Ian Cameron02 August 2021
Move will see the Danfoss Group grow in size by a third
Danfoss said it has officially finalized 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, it said, establish itself as a global leader in mobile and industrial hydraulics.
Danfoss first announced it had entered into an agreement to acquire Eaton’s Hydraulics business in January 2020.
Danfoss said that mobile hydraulics has been one of Danfoss’ core and most successful businesses for over 50 years and added that 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 US$1.8 billion (around €1.5 billion) in 2020 global sales. Combining the two organizations will double the size of Danfoss Power Solutions.
Danfoss 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, it added.
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.”
Eric Alström, President of 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.”