Danfoss has entered into an agreement to acquire Eaton’s hydraulics business for a cash purchase price of 3.3 billion USD (approximately 3.0 billion EUR).
“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 says. “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.”
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 construction, agriculture, 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.