Upon completion of the deal, the business will be moved into the current Danfoss business segment called Danfoss Power Solutions.
Eaton to sell its hydraulics business to Danfoss for $3.3bn. (Credit: Pixabay/Gerd Altmann)
US-based power management company Eaton has agreed to sell its hydraulics business to Danish industrial company Danfoss for $3.3bn in cash.
According to Eaton, its hydraulics business had sales of $2.2bn last year, accounting for 86% of Eaton’s hydraulics segment. The division employs about 11,000 people.
The company will retain its Filtration and Golf Grip businesses, which comes under the hydraulics segment.
Eaton chairman and CEO Craig Arnold said: “We believe this transaction will create substantial value for our shareholders and allow our hydraulics employees to be part of a company that has a strong commitment to the hydraulics industry.”
Subjected to customary closing conditions and regulatory approvals, the transaction is estimated to be completed by the end of the year.
Eaton is a power management company that provides energy-efficient solutions for the customers to manage electrical, hydraulic and mechanical power more efficiently.
The company’s hydraulics business supplies hydraulics components, systems, and services for industrial and mobile equipment.
Danfoss president and CEO Kim Fausing said: “Eaton Hydraulics is a highly respected player in the global hydraulics industry, recognized for its dedicated people and strong brands.
“By combining the knowledge and experience of these two companies, our customers will benefit from unmatched expertise from a single partner.”
Eaton’s hydraulics business to be transferred into Danfoss Power Solutions
With about 101,000 employees, Eaton sells products to customers in over 175 countries.
Eaton’s hydraulics delivers products for customers in markets include agriculture, construction, and industrial market segments.
Upon completion of the deal, the business will be moved into the current Danfoss business segment called Danfoss Power Solutions.
The acquisition is part of the Danfoss’ strategy to strengthen its core businesses and enhance customer value.
With complementary geographic footprints, the combined Danfoss and Eaton’s hydraulics businesses are expected to create a broader presence across the world.
In July last year, Eaton announced its plans to acquire the Souriau-Sunbank Connection Technologies, a business of TransDigm, for $920m.