Ireland-based power management company Eaton Corporation PLC agreed to sell its hydraulics business to Denmark-based engineering solutions provider Danfoss A/S for $3.3 billion in cash.
The business, which specializes in components, systems, and services for industrial and mobile equipment, contributed 86% of Eaton's Hydraulics segment revenue in 2019. The company will retain its filtration and golf grip businesses.
The deal value amounts to about 13.2x Eaton's 2019 EBITDA. The business recorded sales worth $2.2 billion in 2019.
The transaction is expected to close by the end of 2020 and is subject to customary closing conditions.