The planned merger would have no immediate effect on Lawrence's Sauer-Sundstrand Co. plant.
Sauer Inc. -- parent of Sauer-Sundstrand Co., which has a plant in the East Hills Business Park -- and Danfoss Fluid Power, a Danish based manufacturer, announced plans Tuesday for a "merger of equals" expected to be completed within two months.
The combined company, to be known as Sauer-Danfoss Inc., would have annual sales of $860 million and 6,200 employees in North America, Europe and Asia.
The partners said the stock swap deal would create a global powerhouse.
"The vision behind the merger is to create a global market leader within mobile hydraulics," Sauer officials said in a prepared statement. "This combination will be a world leader in providing state-of-the-art integrated hydraulic systems and services for mobile off-highway vehicles."
Together, the companies would boost sales to the manufacturers of vehicles used in agricultural, road building, construction, turf care, forestry and municipal applications.
In Lawrence, Sauer-Sundstrand has 75 employees who manufacture medium-duty hydraulic power systems, primarily for skid-steer loaders. The $35 million plant, which covers 162,000 square feet at 3840 Greenway Drive, is expected to produce $80 million in sales this year.
The Lawrence plant already is working on installing a new production line -- one relocated from its domestic headquarters in Ames, Iowa -- that is expected to double the plant's employment in the coming months, said Keith Folkmann, director of plant operations.
His thoughts on the merger: What's good for the company is good for Lawrence.
"Between the two companies, the products produced complement each other," Folkmann said. "There's very minimal overlap between the products of the two companies. For the Lawrence plant it means we are part of a bigger company than what we were, and gives us an advantage in the marketplace.
"There really will be no direct, immediate impact on the Lawrence facility."
Sauer-Danfoss would be based in Ames, Iowa; Neumunster, Germany and Nordborg, Denmark. The group would be headed by Chairman Klaus Murmann of Sauer and Vice Chairman Jorgen Clausen of Danfoss.
Tonio Barlage from Sauer is expected to serve as chief executive, with Niels Erik Hansen from Danfoss Fluid Power and David Pfeifle from Sauer as executive vice presidents.
-- Mark Fagan's phone message number is 832-7188. His e-mail address is mfagan@ljworld.com.
No comments
Commenting is turned off for this story.