Danfoss finishes acquisition of Sauer-Danfoss, expanding North American investment

Danfoss acquired the outstanding shares of Sauer-Danfoss and changed its name to Danfoss Power Solutions.


After more than 10 years as part-owner, Danfoss has now officially brought the Sauer-Danfoss business wholly into its business structure through an acquisition announced earlier this year—expanding the company’s business to include mobile hydraulic and electrohydraulic solutions. With North American headquarters in Ames, Iowa, the acquisition of Sauer-Danfoss signifies Danfoss’ continued dedication to the North American market, the companies said. As part of the acquisition process, Sauer-Danfoss changed its name to Danfoss Power Solutions, a new business segment within the Danfoss Group.

Danfoss purchased the remaining shares of Sauer. As part of the acquisition process, Sauer-Danfoss changed its name to Danfoss Power Solutions, a new business segment within the Danfoss Group.

In March 2013, Danfoss and Sauer-Danfoss announced that the companies signed a merger agreement, wherein Danfoss acquired the 24.4% of Sauer-Danfoss shares that it did not already own. Globally, in 2012, Sauer-Danfoss had revenues of approximately $1.9 billion; Danfoss’ global net sales were approximately $6 billion.

“North America is the largest market for Danfoss,” explained John Galyen, president, Danfoss North America. “We’re continuing to invest and expand our footprint here, and the addition of Sauer-Danfoss is another hallmark of our dedication to growth in the marketplace as a provider of innovative technologies.” The full acquisition also is a milestone for Danfoss globally, the company said.

“This is an extremely important step for the entire Danfoss Group,” noted Danfoss president and CEO, Niels B. Christiansen. “Sauer-Danfoss is a well-run global company, so, for us, it marks the convergence of two equal units that will become stronger as a result.”

As one of the largest companies offering mobile hydraulics and with more than 50 years of experience, Danfoss Power Solutions provides OEM customers with off-the-shelf components and custom-engineered system solutions, including the controlling electronics and software, for off-highway vehicles designed for agriculture, construction, material handling, road building, turf care, and specialty applications. These systems help manufacturers more effectively control every function of their machinery—from basic vehicle movement to complex work tasks, Danfoss said.

Global brand, local impact

Among offerings from Danfoss Power Solutions (previously Sauer-Danfoss) is this space-saving valve option, providing hydraulic flow and lowering system costs to heavy-duty work functions on construction, agriculture, and forestry machinery. PVG 100 High-F“By joining Danfoss, we become part of one strong global brand with a high level of commitment to research and development,” said Eric Alström, former Sauer-Danfoss president and CEO, who continues in this role for the new Danfoss Power Solutions business segment.

Globally, Danfoss Power Solutions employs approximately 6,400 employees and has 19 manufacturing and engineering facilities, as well as sales companies and a large number of distributors. In North America, the integration of Danfoss Power Solutions into the Danfoss Group is significant, adding five new locations to the company’s footprint and about 2,000 employees.

Alström added, “The merger also ensures our customers a high degree of continuity. Danfoss has had a long-standing relationship with Sauer-Danfoss through its board-level involvement, and has helped shape our existing strategy that we will continue to pursue.”

- Edited by Mark T. Hoske, content manager, CFE Media, Control Engineering, Plant Engineering, and Consulting-Specifying Engineer, mhoske@cfemedia.com.





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