Danfoss will be valued at $ 3.3 billion, while Dane will receive more than 10,000 new jobs and $ 1.8 billion in annual sales. With the acquisition of the hydraulics division of Irish rival Eaton, the Danfoss Group grew by a third and established itself as the world’s leading supplier of hydraulic drive systems.
The German-based Newmanster location of the “Power Solutions” division, which has about 900 employees, should benefit significantly from the long-term acquisition.
Danfoss specializes in tractors, excavators and forklifts.
Mobile Hydraulics has been one of Danfoss’s leading and successful businesses for over 50 years. In 2012, Daines acquired the company after acquiring a 100 percent stake in Sauer Danfoss in New Manchester.
Klose Mormon’s former company, which died in 2014, has gained worldwide fame as a manufacturer of hydraulic transmissions and drive systems for forklifts, excavators, tractors and other drive vehicles. The Eaton Hydraulics division will now be merged into Danfoss Power Solutions.
Managing Director Dirk Metz: “No acquisitions to save costs”
What does Newmanster Location mean? One thing’s for sure is Dirk Metzges, the managing director there: “This acquisition is not designed for synergy or cost-profit, but for growth.” Products from Eaton and Danfoss overlap, but there are basically very valuable additions. Eaton specializes mainly in the field of industrial hydraulics, while Danfoss is mainly active in the field of mobility.
Eaton’s integration will not only make Danfoss Power Solutions a stronger technology partner for customers around the world, but also enhance its potential to play a key role in the future markets of digitization and electrification.
Metzs finds it particularly beneficial to significantly increase the number of potential customers for acquisition: “This means that the already good order at the location will continue to improve.” It should also increase the number of jobs.
Danfoss President and Chief Executive Officer Kim Fawcett talks about “the best day for Danfoss”. Dane is a world leader in the fields of refrigeration, air conditioning, heating, motor control and mobile machines. Danfoss employs approximately 37,000 people and distributes customers in more than 100 countries.
IG Metal was also impressed with Eaton’s acquisition
The union views the acquisition positively: “We hope the merger with Eaton will strengthen our collective bargaining and union-strong position in Newmanster,” said Stephanie Schmoliner, head of IG MetalKeal / Newmenster.
The listed Eaton Corporation is a global Irish industrial company based in Dublin. Eaton develops and sells components and systems for mobile, industrial hydraulics, electrical systems, power supplies, vehicle and aircraft components. The group employs about 10,000 people and sells products to customers in more than 150 countries.
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