Today, Danfoss has entered into an agreement to acquire Eaton’s Hydraulics business. The acquisition marks a major milestone in the company’s history and its Going Great strategy.
The acquisition is fully in line with Danfoss’ strategy to strengthen its core businesses and enhance customer value.
The Danfoss and Eaton Hydraulics businesses have many organizational similarities, including company culture and a focus on customers, R&D and quality. Both businesses are global with complementary geographic footprints and the combined business creates a broader presence across the world. Furthermore, the acquisition will enable Danfoss to enter the industrial hydraulics market that is served by Eaton Hydraulics.
Eaton Hydraulics provides products for customers in markets such as agriculture, construction, and in industrial market segments. 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) to the business segment, which will double the hydraulics business. Danfoss today has approximately 28,000 employees and 2019 sales of 7.0 billion USD (6.3 billion EUR). Accordingly, with this transaction, Danfoss will increase its size by one-third.
The transaction is subject to customary closing conditions and regulatory approvals and is expected to close by the end of the year.
In the picture: Kim Fausing, Danfoss President and CEO.