Tag Archives: Kim Fausing

Danfoss to acquire Eaton’s Hydraulics business

Danfoss has entered into an agreement to acquire Eaton’s Hydraulics business, creating a “global leader in mobile and industrial hydraulics”, Kim Fausing, Danfoss’ President and CEO, says.

The company has agreed to pay $3.3 billion for the business, explaining that the acquisition is fully in line with Danfoss’ strategy to strengthen its core businesses and enhance customer value.

Fausing said the deal was a “once-in-a-lifetime opportunity” to combine the two companies’ largely complementary portfolios and geographic footprints.

“Eaton Hydraulics is a highly respected player in the global industry, recognised 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 single partner,” he said.

“With this agreement, we continue to invest in our core hydraulics business and digital solutions to stay a strong technology partner.”

Craig Arnold, Eaton Chairman and CEO, said Eaton’s Hydraulics business will benefit greatly from being “part of a company that has hydraulics at its core”.

He added: “When complete, this deal will bring together two talented teams with deep hydraulics knowledge and expertise. And Eaton’s hydraulics team will be part of a company that is committed to becoming a global leader in mobile and industrial hydraulics. The combined business will also benefit customers and distributors by offering industry-leading technology and a much broader portfolio of hydraulic solutions.”

Danfoss says the two businesses are leaders in the industry and have many organisational similarities, including company culture and a focus on customers, R&D and quality. The combined business creates a broader presence across the world, while enabling Danfoss to enter the industrial hydraulics market served by Eaton Hydraulics, the company explained.

Eaton Hydraulics provides products for customers in markets such as agriculture, construction and industrial markets. It also supplies mining companies with harsh duty cycle component solutions and services.

The business will be transferred into the existing Danfoss business segment, Danfoss Power Solutions, adding around 11,000 employees and 2019 sales of $2.2 billion to the business segment, which will double the hydraulics business. Danfoss, today, has some 28,000 employees and 2019 sales of $7 billion. Accordingly, with this transaction, Danfoss will increase its size by one-third.

Eric Alström, President of Danfoss Power Solutions, said: “Hydraulics is our core, and we have for years strengthened our Power Solutions business through high customer focus, as well as through significant investments in technology leadership.

“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.”

The transaction is subject to customary closing conditions and regulatory approvals and is expected to close by the end of the year.

Danfoss and ASI to collaborate on autonomous technology

Danfoss and Autonomous Solutions Inc (ASI) have signed an agreement for a strategic partnership to collaborate on autonomous technology for mobile equipment applications and adjacent markets, they said.

With the strategic partnership, ASI, a leader in autonomous solutions in the mining space, and Danfoss will align the strengths of the two companies working toward a common goal of enabling more customers to adopt autonomous solutions for their applications, Danfoss said.

“Autonomous technology can increase safety and productivity, and also support tackling challenges like reliable food supply and sustainable primary industries,” the company added.

Kim Fausing, President and CEO of Danfoss, said: “This partnership demonstrates our ambition to invest in autonomy and be the innovative partner for our customers. It’s a promising partnership and we are excited about the potential in vehicle automation.”

ASI, which has been working on autonomous vehicle projects with the likes of Barrick Gold and Ferrexpo, was the subject of corporate activity last year when Epiroc acquired 34% of the company.

Mel Torrie, President and CEO of ASI, says: “ASI has been using the innovative Danfoss components over the last 20 years to support our autonomy development with the world’s leading vehicle OEMs. This new partnership will ensure manufacturers have the needed support to streamline their efforts in making autonomous industrial vehicles a mainstream reality.”

ASI is a longtime Danfoss customer, using the PLUS+1® software platform from Danfoss Power Solutions in several of the vehicles it has automated in the past, according to Danfoss.