Danske Bank: Danfoss divests business unit

Danfoss has sold the business unit “White Drive Motors & Steering” to Interpump Group for EUR 230m (plus an earn out with expected value of around EUR 40m). The deal is expected to close in Q4 21 following Danfoss’ closing of the acquisition of Eaton’s Hydraulics business. The divestment of this business segment was expected as it is a necessary step to get the regulatory approval to close the Eaton Hydraulics acquisition. The White Drive Motors & Steering unit had expected FY21 revenues of slightly above EUR 200m with EBITDA of approx. EUR 45m. Overall credit neutral and as expected. With this divestment we believe the closing of the acquisition of Eaton’s Hydraulics business is imminent.