Danish hydraulics manufacturer Danfoss has acquired Eaton’s hydraulic business for $3.3 billion.
Eaton Hydraulics is one of the world’s leading suppliers of hydraulic systems, components and controls for agricultural, construction and industrial equipment, producing pumps, motors, transmissions, valves, cylinders and hoses. Last year it generated more than $2.2 billion in revenues.
The acquisition will increase Danfoss revenues by more than 33 percent to around €8.5 billion while adding 28,000 employees to the company’s power solutions division. Danfoss claims that the two companies have many organisational similarities and complementary geographic strengths, helping Danfoss to enter markets where Eaton is strong and Danfoss less so.
Danfoss chief executive Kim Fausing said: “Today, we take a significant and transformational step in creating a global leader in mobile and industrial hydraulics. 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, recognised for its dedicated people and strong brands. 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.”
Eaton group chief executive Craig Arnold added: “We believe Eaton Hydraulics business will benefit greatly from being part of a company that has hydraulics at its core. 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 that is committed to becoming a global leader in mobile and industrial hydraulics. ”
The acquisition is expected to conclude by the end of the year and is subject to normal closing conditions and regulatory approvals.