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Eaton Reaches Agreement To Sell Its Hydraulics Business

Nov 6 (Reuters) – U.s. Manhattan Court of Appeals upheld the rejection of the proposed group action, which accuses eaton corp of misleading shareholders about the possibility that eaton could divest its vehicle business after the merger of Cooper Industries – Stop:. Full Article Danfoss announced that it has entered into an agreement to acquire Eaton`s hydraulics business for a cash purchase price of $3.3 billion. Eaton said that in 2019, Hydraulics has sales of $2.2 billion and employs about 11,000 people. The company manufactures hydraulic components, systems and services for industrial and mobile equipment and, according to the communication, “represented 86% of Eaton`s hydraulic segment revenue in 2019,” the statement said. Eaton stated that it retained its filtration and golf grip business, which is currently declared in the company`s hydraulic segment. Eric Alstrom, President of Danfoss Power Solutions, said: “I think our customers will benefit from combining these two companies into a full-line hydraulic drive dedicated to innovation and offering a wide range of products, robust distribution channels and huge geographic coverage.” DUBLIN, Ireland … Energy management company Eaton (NYSE:ETN) announced today that it has reached an agreement to sell its hydraulic operations to Danfoss A/S, a Danish industrial company, for $3.3 billion in cash. This is 13.2 times EBITDA 2019. Eaton, which is based in Dublin, Ireland but has its North American headquarters in Beachwood, said in a press release that the sale price of the hydraulics business “represents 13.2 times EBITDA 2019,” earnings before interest, taxes, depreciation and amortization.

The transaction, subject to customary closing conditions and regulatory approvals, is expected to close by the end of the year. Earlier this month, Eaton announced that it had sold its Automotive Fluid Conveyance division to private equity firm Quantum Capital Partners. Terms of the transaction were not disclosed. The division, which is part of the Eaton Vehicle Group, generated revenues of about $150 million in 2018. Eaton announced a sale of the division in March last year and said it wanted to focus on more dynamic segments of Vehicle Group`s business. “Today`s announcement is part of Eaton`s ongoing transformation into a growing company with better resistance to returns,” said Craig Arnold, President and CEO of Eaton.” “We believe this transaction will bring significant added value to our shareholders and allow our hydraulic agents to be part of a company with a strong commitment to the hydraulic industry.” High-quality hydraulic solutions are as relevant as ever, with major global trends changing the world.

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Deepak Kamboj

Deepak Kamboj is a Solution Architect and Technology Enthusiast, located at Redmond, WA, having 14+ years of hands on experience in the IT industry.

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