As of July 2022, Hydraforce agreed to be acquired by Bosch Rexroth for an undisclosed sum. On the surface, the advantages this acquisition offers Bosch Rexroth are obvious. The seemingly preeminent advantage of a merger of this magnitude would be increased global market share, but we see another asset that Hydraforce provides the hydraulic juggernaut.
Two Birds with One Stone
While Bosch Rexroth has been a Goliath of the global hydraulics market for decades, this giant had a weakness in its portfolio: the American mobile hydraulics market. Historically, the Americas has been the weakest region of revenue generation for Bosch Rexroth. With the addition of Hydraforce, we expect Bosch’s total share of the American mobile hydraulics market to increase by a full percentage point, narrowing the gap between Bosch’s third place and Parker Hannifin’s second place. For the American valve market, the merger has an even more tangible effect with Bosch set to overtake Parker Hannifin and ascend to the number two spot.
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