HOPKINSVILLE, KY.—Danfoss Power Solutions is selling off a portion of its existing business to help win regulatory approval for the purchase of Eaton Corp.'s hydraulics business.
Danfoss A/S revealed plans to buy Eaton Hydraulics for $3.3 billion in 2020, a move the company calls transformative.
To obtain regulatory approval from both the U.S. Department of Justice and the European Commission, the company created a new business unit called White Drive Motors & Steering with plans to sell those operations.
"White Drive Motors & Steering has a competitive and comprehensive portfolio of orbital motor and steering products, as well as the required market share coverage to play a significant role in the mobile hydraulics industry," the company said.
Included in the new business created in February are Danfoss plants in Hopkinsville and Wroclaw, Poland, and Parchim, Germany.
The to-be-sold division takes its name from a 2016 acquisition by Danfoss of White Drive Products Inc., a maker of hydraulic motors in Hopkinsville.
Once the Eaton deal closes, the White business also will include two product lines from Eaton Hydraulics in Shawnee, Okla., and one in Eden Prairie Minn., the company said. The product lines as well as some equipment from Eaton's plant in Searcy, Ark., will be moved from those sites. The changes will involve about 800 employees.