Danfoss is future-proofing its business with the acquisition of electric motor specialists.
The definitive merger agreement with UQM Technologies, which manufactures motors and inverters in the power range up to 250kW, will enable Danfoss to be able to serve a wider slice of the industrial vehicle market.
Danfoss president and CEO Kim Fausing said, “It is a great pleasure to announce this transaction with UQM, which will position Danfoss even stronger in the markets. We see a fast-growing demand for electric solutions within buses and trucks, off-highway vehicles and the marine market in response to the more stringent emissions regulations being imposed in these markets, as well as efficiency and productivity gains that these solutions bring.
“With a well-established North American presence, this will nicely complement our already strong global sales and manufacturing footprint, and further cement our strong position in the marine, and on- and off-highway markets. I look forward to welcoming the UQM team to Danfoss and to our business.”
Experience and expertise
Headquartered in Longmont, Colorado, UQM has over half a century of experience in pure electric, hybrid electric and plug-in hybrid vehicle propulsion systems and fuel cell compressor drives.
The company’s president and CEO, Joe Mitchell (right), said, “We believe UQM will be an excellent addition to Danfoss as our products, business model, strategy and focus are closely aligned. Being part of a larger global enterprise will greatly improve our position to compete with other international players, open doors to new markets, and provide critical resources for UQM to continue developing the highly-engineered electric propulsion products we’re known for today.
“We believe the transaction positions UQM well for the future – particularly in key geographies, such as China and India, where Danfoss already operates – and provides an attractive return for our shareholders. We’re proud of our many accomplishments and look forward to a future with Danfoss, with which we can enhance service for our customers, invest in technology, and adapt to the ever-changing dynamics of our core markets.”
The acquisition is expected to close in the second quarter of 2019, subject to approval by UQM’s shareholders and the Committee on Foreign Investment in the United States (CFIUS).
Interested in electric technologies? The Electric & Hybrid Industrial Vehicle Technology Conference takes place during the iVT Expo in Cologne, Germany, February 13-14, 2019.