Danfoss to acquire Eaton’s hydraulics business in $3.3B deal
By P&PC Staff
By P&PC Staff
Danfoss will acquire Eaton’s hydraulics business for a cash purchase price of 3.3 billion USD (approximately 3.0 billion EUR).
The acquisition is subject to closing conditions and expected to close at the end of the year.
Eaton Hydraulics provides products for customers in a variety of markets such as agriculture, construction and industrial, including pulp and paper.
The business will be transferred into the existing Danfoss business segment, Danfoss Power Solutions, adding approximately 11,000 employees and 2019 sales of 2.2 billion USD (2.0 billion EUR), which will double Danfoss hydraulics business.
“Hydraulics is our core, and we have for years strengthened our power solutions business through high customer focus, as well as through significant investments in technology leadership,” says Eric Alström, president of Danfoss Power Solutions.
“I believe our customers will benefit from combining these two businesses into a full-line hydraulics player dedicated to innovation and with a broad offering of products, robust distribution channels and tremendous geographic reach.”
Danfoss today has approximately 28,000 employees and 2019 sales of 7.0 billion USD (6.3 billion EUR). With this transaction, Danfoss will increase its size by one-third.A