On January 21, Danish manufacturer Danfoss announced that it has entered into an agreement to acquire Eaton’s Hydraulics business for a cash purchase price of $3.3 billion.

“Today, we take a significant and transformational step in creating a global leader in mobile and industrial hydraulics. It is a once-in-a-lifetime opportunity to combine our largely complementary portfolios and geographic footprints,” said Danfoss president and CEO Kim Fausing.

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

The Danfoss and Eaton Hydraulics businesses are leaders in the industry, and share a similar company culture and a focus on customers, R&D and quality. Both businesses are global with complementary geographic footprints and the combined business creates a broader presence across the world. Furthermore, the acquisition will enable Danfoss to enter the industrial hydraulics market currently served by Eaton Hydraulics.

Eaton Hydraulics provides products for customers in the industrial space as well as markets such as agriculture, construction and others. The business will be transferred into the existing Danfoss business segment, Danfoss Power Solutions, adding approximately 11,000 employees and 2019 sales of $2.2 billion to the business segment, which will double the hydraulics business. Danfoss currently has approximately 28,000 employees and 2019 sales of $7.0 billion. The transaction will increase Danfoss’s size by one-third.

The transaction is subject to customary closing conditions and regulatory approvals and is expected to close by the end of 2020.