Bosch Rexroth plans to expand its hydraulics business by acquiring HydraForce Inc., based in Lincolnshire, Illinois.
HydraForce develops and manufactures compact hydraulic valves and solutions with 2,100 associates at six production sites in the U.S., Brazil, Great Britain and China. Bosch Rexroth and HydraForce signed an acquisition agreement on July 15; the purchase price will not be disclosed. The transaction is subject to antitrust approvals.
With the planned acquisition of HydraForce, Bosch Rexroth is growing its footprint in North America, further expanding its sales network and gaining better market access.
“By acquiring HydraForce, we are expanding our presence in complementary geographies and developing a more balanced footprint in Europe and North America, while also enabling growth in Asia,” said Rolf Najork, member of the board of management of Robert Bosch GmbH and CEO of Bosch Rexroth AG.
“With Bosch Rexroth, we found a great partner who values and shares similar views on innovation, customer focus, application expertise and culture," said HydraForce President and CEO Mike Terzich. "I believe the new ownership will create great opportunities for our customers, partners and employees and lead to sustained growth."
The combined activities ensure a diverse range of compact hydraulic solutions for customers. While Bosch Rexroth offers a wide range of compact hydraulic components and systems, HydraForce produces mechanical and electrical cartridge valves and hydraulic integrated circuits (HIC). Compact hydraulics is particularly valuable due to its high power density and capabilities regarding essential secondary functions in hydraulic systems. For example, they ensure that excavator loads can be lifted and lowered safely and precisely.
“With its diversified portfolio and international setup, Bosch Rexroth has a strong foundation," said Frank Hess, vice president of the compact hydraulics business at Bosch Rexroth. "The acquisition of HydraForce expands our global market access through indirect sales channels: Sales partners and system integrators will become important target groups. In these challenging times, we are also helping to stabilize regional supply chains so that we can support our customers even better.”
The hydraulics business unit currently employs 1,800 associates and has four manufacturing locations in China, the U.S., Germany and Italy.