HydraForce Signs Acquisition Agreement with Bosch Rexroth

The company develops safe, efficient, intelligent, and high-performance solutions for the areas of Factory Automation, Mobile Applications as well as Machinery Applications and Engineering. With its cross-technology range, digital services and comprehensive service, Bosch Rexroth Drive and Control (DC) group is a partner for machine manufacturers and users. The company develops, produces, and sells its components and system solutions in more than 80 countries. In 2021 it generated revenue of around 6.2 billion euros. Worldwide more than 31,000 associates work for the DC Business Unit.

Within DC, the Compact Hydraulics (CH) business unit designs, manufactures and markets compact hydraulic components for applications such as earth moving, cranes, aerial platforms, agricultural machinery, and industrial applications at its four (if counting Volkach, Germany as a separate location, five) locations in Italy, Germany, the US, and China. The business unit employs around 1,800 associates. Compact hydraulic products tend to take on secondary functions in the system (e.g., safe, controlled lowering of loads on an excavator) instead of main functions (e.g., driving function of an excavator).

Compact hydraulics continues to expand into all facets of hydraulic controls across multiple machine platforms.  The application of compact hydraulics decreases the space claim of the hydraulics and are suitable for mobile applications or industrial applications where compactness is required. Compact hydraulic solutions are found in main control valves solutions such as the ones controlling aerial work platforms, suspension system, transmissions, engines and many more.

How does the acquired business fit into Bosch Rexroth’s portfolio?

In addition to the product portfolio fit, the regional sales structures of HydraForce and Bosch Rexroth complement each other perfectly as well. The combined activities will thus create a well-balanced entity through the US and Europe, and will also support further growth activities in Asia Pacific, and Latin America. 

For the time being, the existing locations remain. It is part of the post-merger  integration process to work on a concept for an ideal set up of all locations which will belong to Bosch Rexroth. In times of increasing supply chain and logistics challenges, we expect synergies that secure us a better position in the global market for compact hydraulics.

Details concerning the post-merger process will be worked out in the next months

Closing means the actual execution of the merger and realization of all agreed pre-conditions (e.g., preparation of IT systems). The prerequisite for a successful closing is a completed antitrust review. We expect the closing to take place in spring 2023. During the months until closing, organizational preparations for the transfer of the business will take place. For example, in IT systems or HR topics. For the time being, however, it is important to adhere to the requirement that the companies continue to operate separately as HydraForce and Bosch Rexroth, respectively.

Summarized with “we move to win”, the culture of Rexroth connects to the promise to the customer, “We move. You win.” Bosch Rexroth moves to be bold, innovative, customer obsessed, excellent, and agile. All of that being based on leadership, trust & empathy, constructive & fair feedback, while supporting each other. Bosch Rexroth has been driving a positive leadership approach.

For the time being, it is important to adhere to the requirement that the companies continue to operate separately as HydraForce and Bosch Rexroth, respectively. The HydraForce and Bosch Rexroth associates have to respect the code of business conduct as before the signing. Integration will start after closing.

To learn more about Bosch Rexroth’s impressive company and product portfolio, please visit: https://www.boschrexroth.com/