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Eaton Reaches Agreement To Sell Its Hydraulics Business For $3.3B

Power management company Eaton (NYSE:ETN) today announced it has entered into an agreement to sell its Hydraulics business to Danfoss A/S, a Danish industrial company, for $3.3 billion in cash. This represents a 13.2

Benzinga · 01/21/2020 21:19

Power management company Eaton (NYSE:ETN) today announced it has entered into an agreement to sell its Hydraulics business to Danfoss A/S, a Danish industrial company, for $3.3 billion in cash. This represents a 13.2 multiple of 2019 EBITDA.

Eaton’s Hydraulics business, which accounted for 86 percent of Eaton’s Hydraulics segment revenue in 2019, is a global leader in hydraulics components, systems, and services for industrial and mobile equipment. The business had sales of $2.2 billion in 2019 and employs approximately 11,000 people.

Eaton is retaining the Filtration and Golf Grip businesses currently reported in the company’s Hydraulics segment.