24.01.2019

Danfoss acquires UQM

Danish based hydraulics and control system manufacturer Danfoss has acquired US motor manufacturer UQM Technologies.

Established in the 1967, UQM manufactures drive systems for electric, hybrid electric and plug-in hybrid electric vehicles, along with fuel cell compressor drives. The company is based in Longmont, Colorado, and will become part of the Danfoss Power Solutions division. Danfoss says the acquisition now gives it a total package to provide to the global markets it serves.

The transaction, valued at around $100 million, plus the assumption of UQM’s debt, is expected to close in the second quarter, subject to approval by UQM’s shareholders and the Committee on Foreign Investment in the United States (CFIUS).
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UQM’s headquarters in Longmont, Colorado

Chief executive Kim Fausing said: “It is a great pleasure to announce this transaction with UQM, which will position Danfoss even stronger in the markets. We see a fast growing demand for electric solutions within buses and trucks, off highway vehicles and the marine market in response to the more stringent emissions regulations being imposed, as well as efficiency and productivity gains that these solutions bring. With a well established North American presence, this will nicely complement our already strong global sales and manufacturing footprint, and further cement our strong position in the marine, and on and off highway markets. I look forward to welcoming the UQM team to Danfoss and to our business.”

UQM Technologies chief executive Joe Mitchell added: “We believe UQM will be an excellent addition to Danfoss as our products, business model, strategy and focus are closely aligned. Being part of a larger global enterprise will greatly improve our position to compete with other international players, open doors to new markets, and provide critical resources for UQM to continue developing the highly engineered electric propulsion products we’re known for today. We believe the transaction positions UQM well for the future – particularly in key markets, such as China and India, where Danfoss already operates – and provides an attractive return for our shareholders.”
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Joe Mitchell