The Danfoss Group announced today that it had reached an agreement with Eaton to acquire Eaton Hydraulics for $3.3 billion. Eaton Hydraulics serves agricultural, construction, and industrial markets and will be transferred into Danfoss Power Solutions. The transfer will add 11,000 employees to Danfoss, which currently employs 28,000 people. The deal is expected to close before the end of the year.
In a statement, Kin Fausing, the President and CEO of Danfoss, said “Eaton Hydraulics is a highly respected player in the global industry, recognized for its dedicated people and strong brands. By combining the knowledge and experience of the two businesses, our customers will benefit from unmatched expertise from a singal partner. With this agreement, we continue to invest in our core hydraulics business and digital solutions to stay a strong technology partner.”
Eaton Chairman and CEO Craig Arnold said he believed Eaton’s hydraulics business “will benefit greatly from being part of a company that has hydraulics at its core.”
Danfoss Power Solutions President Eric Alström concurred: “I believe our customers will benefit from combining these two businesses into a full-line hydraulics player dedicated to innovation and with a broad offering of products, robust distribution channels and tremendous geographic reach.”
