Kim Fausing

Danfoss Agrees to Buy Eaton’s Hydraulics Business

Jan. 22, 2020
Danfoss grows by a third on upcoming purchase.

Danfoss just announced that it has entered into an agreement to acquire Eaton’s Hydraulics business for a cash purchase price of $3.3 billion (about 3 billion). The acquisition is fully in line with Danfoss’ strategy to strengthen its core businesses and enhance customer value, according to a Danfoss spokesperson.

The Danfoss and Eaton Hydraulics businesses are both major players in the hydraulics industry and share several similarities, including company cultures and a focus on customers, R&D, and quality. Both are global businesses, and combining them creates a larger presence across the world. Furthermore, the acquisition will let Danfoss enter the industrial hydraulics markets served by Eaton Hydraulics.

Eaton Hydraulics sells to customers in markets such as agriculture and construction. The business will be move into Danfoss’ business segment, Danfoss Power Solutions, adding approximately 11,000 employees and 2019 sales of $2.2 billion (2. billion Euros) to the business segment, which will double the hydraulics business. Danfoss today has about 28,000 employees and 2019 sales of $7 billion (6.3 billion). So this transaction will let Danfoss increase its size by one-third.

“Today, we take a significant and transformational step in creating a global leader in mobile and industrial hydraulics,” says Kim Fausing, Danfoss president and CEO. “It is a once-in-a-lifetime opportunity to combine our largely complementary portfolios and geographic footprints.

“Eaton Hydraulics is a highly respected player in the global industry, recognized for its dedicated people and strong brands,” Fausing continues. “By combining the knowledge and experience of the two businesses, our customers will benefit from unmatched expertise from a single partner. With this agreement, we continue to invest in our core hydraulics business and digital solutions to stay a strong technology partner.”

“We believe Eaton’s Hydraulics business will benefit greatly from being part of a company that has hydraulics at its core,” adds Craig Arnold, Eaton chairman and CEO. “When complete, this deal will bring together two talented teams with deep hydraulics knowledge and expertise. And Eaton’s hydraulics team will be part of a company committed to becoming a global leader in mobile and industrial hydraulics.”

The transaction is subject to customary closing conditions and regulatory approvals and is expected to close by the end of the year.

About the Author

Stephen Mraz

Steve serves as Senior Editor of Machine Design. He has 23 years of service and has a B.S. Biomedical Engineering from Steve was a Flight officer in the U.S. Navy. He is currently responsible for areas such as aerospace and medical.

Continue Reading

Anchor Fluid Power and TCF Industries Merge Operations in Houston

Aug. 10, 2016
By acquiring TCF Industry’s local manufacturing center in Houston, Anchor Fluid Power expects to strengthen its product offerings and services.

Handbook Simplifies Advanced Aspects of Mobile Hydraulic Controls

May 10, 2017
Author Brendan Casey lays out his hydraulics know-how that he acquired over 27 years in a simple handbook made for people that want to improve their skills in troubleshooting ...

Sponsored Recommendations

MONITORING RELAYS — TYPES AND APPLICATIONS

May 15, 2024
Production equipment is expensive and needs to be protected against input abnormalities such as voltage, current, frequency, and phase to stay online and in operation for the ...

Circuit Protection Devices & Busbars

March 13, 2024
With experienced Product Engineers and Customer Service personnel, Altech provides solutions to your most pressing application challenges. All with one thought in mind - to ensure...

All-In-One DC-UPS Power Solutions

March 13, 2024
Introducing the All-In-One DC-UPS, a versatile solution combining multiple functionalities in a single device. Serving as a power supply, battery charger, battery care module,...

Motor Disconnect Switches

March 13, 2024
With experienced Product Engineers and Customer Service personnel, Altech provides solutions to your most pressing application challenges. All with one thought in mind - to ensure...