(Reuters) - Power management company Eaton Corp (ETN.N) said on Tuesday it had agreed to sell its hydraulics business to Danish industrial company Danfoss A/S for $3.3 billion in cash.
The business, which had sales of $2.2 billion in 2019, accounted for 86% of Eaton’s hydraulics segment and employs about 11,000 people, the company said.
Eaton, however, will retain its filtration and golf grip businesses, which comes under the hydraulics segment.
Danfoss A/S said Eaton’s hydraulics business will be merged with its Danfoss Power Solutions Inc, which makes and sells a range of engineered hydraulic and electronic components.
Pending regulatory approval, the deal is expected to close by the end of the year.
More details on the deal would be provided in its fourth-quarter conference call on Feb. 4, the company said.
Reporting by Dominic Roshan K. L. in Bengaluru; Editing by Maju Samuel and Arun Koyyur