The acquisition of Eaton's hydraulics business by Danfoss is now complete. Danfoss doubles in size and becomes the world's leading manufacturer of mobile and industrial hydraulics. Danfoss' hydraulics operations will be doubled as Eaton's hydraulics business is integrated with Danfoss Power Solutions.
Danfoss has completed its US$3.3 billion (roughly €3 billion) acquisition of Eaton's hydraulics division, after confirmation of all essential regulatory permits and closing conditions. The Danfoss Group will grow by one-third as a result of the acquisition, establishing itself as a global leader in mobile and industrial hydraulics.
For almost 50 years, mobile hydraulics has been one of Danfoss' core and most successful businesses. The purchase of Eaton's hydraulics division is a critical component of Danfoss' growth strategy. Eaton's hydraulics division will be integrated with Danfoss Power Solutions, adding around 10,000 workers worldwide and US$1.8 billion (approximately €1.5 billion) in global sales by 2020. Danfoss Power Solutions will be doubled in size as a result of the merger, increasing its innovation potential by a factor of two.
Danfoss Power Solutions, which has been enhanced, will offer the broadest range of mobile and industrial hydraulics products and solutions on the market, including fluid conveyance systems. The company's distribution channels have been dramatically expanded, and its local application support and geographic reach have significantly expanded. All of these advantages will help Danfoss Power Solutions become a stronger technology partner for existing and future customers, as well as a leader in digitization and electrification.
Danfoss President and CEO Kim Fausing commented on the acquisition, saying, “This is a great day for Danfoss as we welcome 10,000 new colleagues into the organisation and create a global leader in mobile and industrial hydraulics.” Our customers will benefit from an unrivalled level of service and expertise from a single partner by combining the knowledge and experience of two strong businesses and great teams. We will continue to make significant investments to remain at the forefront of technological leadership and to provide solutions that improve productivity and reduce emissions to meet future demands.”
“The need for technologically innovative and industry-changing hydraulic solutions is as great as ever,” stated Eric Alström, President of Danfoss Power Solutions. We're thrilled to have completed this important investment in our core hydraulics business, allowing us to better serve our customers and partners. Combining the two strong businesses is a natural fit that opens up a slew of possibilities, including expanding our technical skills and capabilities, doubling our global application support, and extending the value of our Application Development Centers and digital design tools. Other benefits derived from this project include fluid conveyance and industrial uses.
Paulo Ruiz, President of the former Eaton hydraulics division, stated, “This is an exciting new chapter for both of our businesses and our people, who are stronger together.” Building on a long history of innovation and industry leadership, the new Danfoss Power Solutions team will position itself as a global leader in mobile and industrial hydraulics. The combined product portfolio and expanded global reach will benefit customers and distributors worldwide.”
