Recently, Danfoss in Denmark Nordborg announced that it has received all necessary regulatory approvals and has formally completed the acquisition of Eaton's hydraulics business for $3.3 billion (approximately €3 billion) in accordance with the terms of handover. The acquisition will help Danfoss Group to expand its business by one third and become a global leader in mobile and industrial hydraulics.
For more than 50 years, mobile hydraulics has been one of Danfoss' core and most successful business areas. The acquisition of Eaton's hydraulics business is an important move in Danfoss' growth strategy. Eaton Hydraulics business will be combined with Danfoss Power Systems, bringing approximately 10,000 new members to the Danfoss team worldwide and $1.8 billion (approximately €1.5 billion) in sales (according to the data in 2020). The successful merger of the two organizations will enable Danfoss Power Systems to grow its business scale and innovation capabilities exponentially.
The enhanced Danfoss Power Systems Division will have the broadest range of mobile and industrial hydraulic products and solutions in the market, as well as a full range of products including fluid delivery systems. The company's distribution channel will also be significantly enhanced, with a great increase in local application support capabilities and further geographic expansion. These advantages will enable Danfoss Powertrain to serve existing and new customers even better as a stronger technology partner and to lead the digitalization and electrification process.