Eaton, the global power management company, announced the sale of its hydraulics business and struck A deal with Danfoss A/S, the Danish industrial company, to sell it for $3.3bn in cash, or 13.2 times 2019 EBITDA.

Eaton hydraulic business accounted for 86% of the total annual revenue of the company's hydraulic group in 2019, and is an important supplier of hydraulic components, systems and services for industrial equipment and walking machinery. The business had sales of $2.2 billion in 2019 and currently employs about 11,000 people. Hydraulic group's filtration business and golf club grip business will remain with Eaton.

This decision is an important step in Eaton's transformation into a company with higher growth and continued profitability. Throughout the &; Craig Arnold, chairman and CEO of Eaton corporation, said. We believe that this transaction will create significant value for our shareholders and that the employees of the hydraulic business will have the opportunity to be part of a company with a strong commitment to the hydraulic industry.

Throughout the &; Kim Fausing, President and CEO of danfoss, said: Eaton's hydraulic business is highly valued in the global hydraulic market and is known for its dedicated talent and strong brand position. By combining the expertise and industry experience of both companies, we believe our clients can further benefit from the professional support and services provided by a single partner.

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

About EATON

Eaton is a global power management company with $21.6 billion in sales in 2018. We offer a variety of energy efficient solutions to help customers manage power, fluid power and mechanical power more efficiently, safely and sustainably. The company is committed to improving the quality of human life and the environment through the use of power management technologies and services. Eaton has about 101,000 employees and products in more than 175 countries.

Eaton has been deeply engaged in the Chinese market for more than 20 years. It entered the Chinese market in 1993 and has rapidly developed its business in China since then. In 2004, the company moved its Asia Pacific headquarters from Hong Kong to Shanghai. The greater China region has approximately 10,000 employees, 29 manufacturing facilities and 5 r&d centers. Most of Eaton's products are now made in China.