Dublin-domiciled, US power management company Eaton today announced it has entered into an agreement to sell its hydraulics business to Danfoss, a Danish industrial company, for $3.3-billion (€2.98-billion) in cash.
Kim Fausing, Danfoss CEO Photo: Danfoss
Eaton’s Hydraulics business, which accounted for 86% of Eaton’s Hydraulics segment revenue in 2019, is a major global player in hydraulics components, systems, and services for industrial and mobile equipment. The business saw sales of $2.2-billion (€1.99-billion) in 2019 and employs around 11,000 people.
Eaton is retaining the Filtration and Golf Grip businesses that are currently reported as part of its Hydraulics segment.
“Today’s announcement is part of the ongoing transformation of Eaton into a higher growth company with better earnings consistency,” said Craig Arnold, Eaton Chairman and CEO. “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.”
“Eaton Hydraulics is a highly respected player in the global hydraulics industry, recognised for its dedicated people and strong brands,” said Kim Fausing, Danfoss President and CEO. “By combining the knowledge and experience of these two companies, our customers will benefit from unmatched expertise from a single partner.”
The transaction is subject to customary closing conditions and regulatory approvals and is expected to close by the end of the year.
Back to Homepage
Back to Construction & Engineering