Danfoss has entered into an agreement to acquire Eaton’s Hydraulics business for a cash purchase price of US$3.3 billion.
Danfoss is global company serving many different markets, including mobile hydraulics as used in construction equipment. For the first nine months of 2019 the company had sales of €4.8 billion (US$5.3 billion) with a net profit of €383 million (US$424 million). Eaton Hydraulics provides products for customers in markets including agriculture and construction.
“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,” said Kim Fausing, Danfoss President and CEO.
“Eaton’s hydraulics team will be part of a company that is committed to becoming a global leader in mobile and industrial hydraulics. The combined business will also benefit customers and distributors by offering industry-leading technology and a much broader portfolio of hydraulic solutions,” said Craig Arnold, Eaton Chairman and CEO.
Both businesses are global and the acquisition will enable Danfoss to enter the industrial hydraulics market that is served by Eaton Hydraulics.
The business will be transferred into the existing Danfoss business segment, Danfoss Power Solutions and, with this transaction, Danfoss will increase its size by one-third.
The transaction is subject to customary closing conditions and regulatory approvals. It is expected to close by the end of the year.