And, Another Danfoss Acquisition
By Mike Osenga24 October 2018
Danfoss, which over the last few years has made a series of acquisitions and investments that has expanded its product reach both within its traditional hydraulics area, as well as into the electrification world, has now announced the acquisition of the majority shares of Artemis Intelligent Power Ltd. (AIP), an R&D and engineering company based in Edinburgh, Scotland,
AIP specializes in hydraulic system development and will become a joint venture between Mitsubishi Heavy Industries (MHI) and Danfoss, with Danfoss as the majority shareholder.
The acquisition is subject to approvals by relevant authorities and is expected to be fully completed during the fourth quarter 2018. The parties have not disclosed the purchase price or other conditions of the acquisition.
The acquisition drive started in November 2017 when Danfoss made a strong move into electrification buying Visedo Oy, Lappeenranta, Finland, a manufacturer of hybrid and electric drivetrains for electric vehicles in the marine, commercial vehicle and heavy-duty sectors. Visedo, has become in essence, the electrification center for Danfoss Power Solutions.
This July, Danfoss acquired the remote control business of Spain’s Ikusi, that included equipment and technologies for wireless operation and control of truck-mounted cranes, winches, off-road machines, and other applications.
In September, Danfoss made another electrification move acquiring AXCO-Motors, also in Lappeenranta, Finland, a manufacturer of larger electric motors and generators (from 250 kW and up to 6 MW) for applications including maritime vessels and off-highway vehicles.
This latest acquisition includes AIP’s digital displacement technology, which will enable Danfoss to develop hydraulic pumps, motors and systems with what it calls “unprecedented levels of efficiency, controllability and design flexibility for customers.”
Danfoss will establish a manufacturing presence in Edinburgh to deliver products to the market based on the digital displacement technology, while establishing Edinburgh as the Center of Excellence for this technology.
“Digitalization is a key driver in our industry and AIP constitutes a strategic fit with our ambition for technology leadership, innovation speed and the core product differentiators of efficiency and controllability. The digital displacement technology will provide Danfoss with a competitive advantage in developing innovative Danfoss products and systems and bringing them to the market,” said Eric Alström, president, Danfoss Power Solutions.
Jeff Herrin, vice president, R&D at Danfoss Power Solutions, comments: “Danfoss Power Solutions and AIP have enjoyed many years of close relationship, working on the development of the digital displacement technology together. We look forward to commercializing the digital displacement technology in a new family of hydraulic pumps. With this new collaboration with both AIP and MHI, these development activities will accelerate and broaden in scope.”
“For as long as people need to dig, build and plow, we will need heavy machines to help. But this market urgently demands cost-effective digital technologies to reduce emissions and enable automation. I’m thrilled that our technology and our team have been recognized as a key part of the solution by a leading global manufacturer. Like MHI, Danfoss sees developing energy-saving technologies as the foundation of its future business,” says Niall Caldwell, managing director at Artemis.