CHICAGO, March 10 -- Sauer-Danfoss Inc. (NYSE:SHS) today announced that Sauer Holding GmbH, a company owned by the Murmann family, has entered into an agreement to sell 17.5% of the outstanding shares of Sauer-Danfoss Inc. to the Danfoss Group. Upon the closing of the transaction, Danfoss will become the majority shareholder in Sauer-Danfoss. The agreements between the parties, which are subject to certain closing conditions, include options to transfer the remaining portion of the Murmann family's shares in Sauer-Danfoss, consisting of approximately 20% of the outstanding shares, to the Danfoss Group within the next five years.
The agreement evolves from the success of the merger of Sauer Inc. and Danfoss Fluid Power in 2000, forming Sauer-Danfoss Inc. The families behind the two companies are the Murmann family of Germany and the Clausen family of Denmark. Since 2000, Sauer-Danfoss has more than doubled its sales from $850 million to $2 billion, and as a result of the initial merger and the partnership between the two family businesses, Sauer-Danfoss has become a global leader in its field.
"The close relationship and trust that has been built between the Murmann and Clausen families, who are both rooted in the border region of Germany and Denmark, Schleswig-Holstein, has paved the way for this transition of ownership," commented Jorgen Clausen, Chairman of Sauer-Danfoss.
Klaus Murmann, Chairman Emeritus of Sauer-Danfoss, remarked, "As globalization and consolidation in the industry set new standards and requirements for technological innovation and financial capacity, the parties believe that the Company will be better prepared for the future by being more solidly tied to a global group like Danfoss, especially since the values and beliefs of the founding families have been even more strongly aligned through the years of mutual ownership."
David Anderson, President and Chief Executive Officer of Sauer-Danfoss, stated, "I see this as a very positive development for the Company's employees, customers, public shareholders and other stakeholders. Both families, along with Company management, have been closely aligned all along on the vision and strategic direction of the Company. This will not change, but rather reinforce, the stability of the Company's longstanding focus on the mobile equipment industry."
Sauer-Danfoss Inc. is a worldwide leader in the design, manufacture, and sale of engineered hydraulic, electric and electronic systems and components, for use primarily in applications of mobile equipment. Sauer-Danfoss, with 9,800 employees worldwide and revenue of approximately $2.0 billion, has sales, manufacturing, and engineering capabilities in Europe, the Americas, and the Asia-Pacific region. The Company's executive offices are located near Chicago in Lincolnshire, Illinois and in Neumunster, Germany. More details online at www.sauer-danfoss.com.
Source: Sauer-Danfoss Inc.
Kenneth D. McCuskey,
Vice President and Chief Accounting Officer,
John N. Langrick,
Director of Finance Europe,
both of Sauer-Danfoss Inc.
Web site: www.sauer-danfoss.com/