Danfoss agrees merger
24 January 2019
Danish manufacturer Danfoss has agreed a merger with US-based UQM Technologies, with Danfoss acquiring all outstanding common shares of UQM.
Danfoss said UQM was a leading expert and the technology leader in motors and inverters in the power range of up to 250kW, and that the deal added an important and complementary technology to its current product range.
It said the acquisition would give the company the total package for serving its global markets with optimal solutions, and thereby fully supporting its customers’ needs – regardless of the chosen technologies.
This would, it said, enable further growth in its markets and additional growth in the market for trucks and buses.
Kim Fausing, president and CEO of Danfoss, said, “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 in these markets, 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.”
UQM has more than 50 years of experience within propulsion systems for electric, hybrid electric, plug-in hybrid electric vehicles and fuel cell compressor drives, and is based in Longmont, Colorado, US. It will become part of the Danfoss Power Solutions segment.
Joe Mitchell, president and CEO of UQM Technologies, said, “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 geographies, such as China and India, where Danfoss already operates – and provides an attractive return for our shareholders.”
He added, “We’re proud of our many accomplishments and look forward to a future with Danfoss, with which we can enhance service for our customers, invest in technology, and adapt to the ever-changing dynamics of our core markets.”
The transaction is expected to close in the second quarter of 2019, subject to approval by UQM’s shareholders and the Committee on Foreign Investment in the US (CFIUS).