Hydraulic cylinders manufacturer Hyco International has sold Hidrover Válvulas S/A to Sauer-Danfoss Ltda, a Brazilian subsidiary of Sauer-Danfoss Inc.
This was the second step in a two-step transaction. In April the shareholders of Hidrover Equipamentos Oleodinâmicos S/A created a spin-off company, Hidrover Válvulas S/A, to separate the hydraulic valves business from the hydraulic cylinder business. As previously announced, Hyco acquired the residual hydraulic cylinder company, Hidrover Equipamentos Oleodinâmicos S/A (“Hyco Hidrover”) on 15 May 2001. On the same day, Sauer-Danfoss entered into a contract to purchase the spin-off valve company. That purchase closed on Friday 21 July 2001. This two-step approach allowed the former owners of Hidrover to apportion the sale of their business between two well established strategic buyers, Hyco said.
On an interim basis, Hidrover Válvulas S/A will continue operations at the Hyco Hidrover location, although Hyco will cooperate closely with Sauer-Danfoss in the relocation of Hidrover Válvulas to dedicated facilities, nearby.
Hyco Hidrover general manager Roberto Bof said: “The sale of the hydraulic valve business to Sauer-Danfoss will afford Hyco Hidrover the room it needs to grow its hydraulic cylinders activity.” Hyco and Sauer-Danfoss said that they expect to continue to pursue cross-selling opportunities. No reductions in staff were made as a result of this business separation and the two subsequent acquisitions.
US-based Hyco International operates eight factories in North America, Europe and South America, specialising in hydraulic cylinders for mobile applications.
