Danfoss completes US$3.3 billion acquisition of Eaton Hydraulics
By Andy Brown02 August 2021
Danfoss has officially 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 by a third in size and the company says that the acquisition of Eaton’s hydraulics business is a vital aspect of its growth strategy.
It was announced in January that Danfoss, a global company serving many different markets, including mobile hydraulics as used in construction equipment, had agreed a deal to buy Eaton’s hydraulics business.
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 in 2020 global sales.
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 boosted, while its local application support and geographical reach have increased considerably.
Danfoss President and CEO Kim Fausing, said, “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.”
Paulo Ruiz, president of the former Eaton hydraulics business, added that, “The combined product portfolio and broadened global reach will better serve customers and distributors all around the world.”