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Video: Danfoss Takes Over Eaton's Hydraulic Business
2023 Author: Hannah Pearcy | [email protected]. Last modified: 2023-05-24 11:12
The two parties to the agreement reached an agreement to acquire Eaton's hydraulic business: Danfoss acquired Eaton's hydraulic business at a purchase price of $ 3.3 billion. In doing so, Danfoss has taken a decisive step towards becoming the global leader in the mobile and industrial hydraulic business. "With this agreement, we are continuing to invest in our core hydraulic business and digital solutions to remain a strong technology partner," said Kim Fausing, President and CEO of Danfoss.
Danfoss doubles its hydraulic business
The hydraulic business will be transferred to the existing Danfoss Power Solutions business segment. This will expand the business to around 11,000 employees and sales of $ 2.2 billion in 2019. This will double Danfoss' hydraulic business. Danfoss currently has approximately 28,000 employees and 2019 sales of $ 7 billion. This transaction increases Danfoss by a third.
"We believe Eaton's hydraulic business will benefit greatly from being part of a company that has hydraulics in its core business," said Craig Arnold, Eaton CEO and CEO. Eaton retains the Filtration and Golf Grip business units, which are currently reported in the company's hydraulic segment.
The transaction is subject to customary closing conditions and regulatory approval. It is expected to be completed by the end of the year.