Danfoss Completes $3.3 Bn Acquisition of Eaton’s Hydraulics Business

Danfoss Power Solutions in India has completed its USD 3.3 billion acquisition of Eaton’s hydraulics business following confirmation of all necessary regulatory approvals and closing conditions.

The move will see Danfoss Group grow in size by a third and establish itself as a global leader in mobile and industrial hydraulics.

Mobile hydraulics has been one of Danfoss’ core and most successful businesses for over 50 years.

The company said that this acquisition is a vital aspect of it’s growth strategy.

Now, Eaton’s hydraulics business will be combined with Danfoss’Power Solutions business segment, adding approximately 10,000 employees worldwide and USD 1.8 billion in 2020 global sales.

Combining the two organizations will double the size of Danfoss Power Solutions, increasing its innovation capacity two-fold.

Commenting on the acquisition, Kim Fausing, President and CEO of Danfoss, said “This is a great day for Danfoss as we welcome 10,000 new colleagues into the organization and create a global leader in mobile and industrial hydraulics. By combining the knowledge and experience of the two strong businesses and great teams, our customers will receive an unmatched level of service and expertise from a single partner. We will continue our significant investments to stay on the forefront of technology leadership and provide solutions that improve productivity and reduce emissions to meet the requirements of the future.”

“The need for technologically innovative and industry-changing hydraulic solutions is as great as ever. We’re very pleased to complete this significant investment in our core hydraulics business so we can serve our customers and partners even better than before. Combining the two robust businesses represents a perfect match and provides countless opportunities, such as increasing our engineering expertise and capabilities, doubling our global application support and extending the value of our Application Development Centers and digital design tools. Adding fluid conveyance and industrial applications are other assets gained through this transaction,” said Eric Alström, President of Danfoss Power Solutions.

Paulo Ruiz, President of the former Eaton hydraulics business, added “This is an exciting new chapter for both of our businesses and our people, which are stronger together. The new Danfoss Power Solutions team will create a global leader in mobile and industrial hydraulics, drawing on long legacies of innovation and industry-leading expertise. The combined product portfolio and broadened global reach will better serve customers and distributors all around the world.”

With this merger, Danfoss Power Solutions on-roll employee headcount crosses 1000 in India.