In 2008 Bosch Rexroth began the legal integration of its then-latest purchase the Swedish company Hägglunds Drives.
Bosch Rexroth a subsidiary within the German Robert Bosch GmbH is one of the world-leading suppliers within drive and control technology. The Drive and Control Company develops produces and sells Bosch Rexroth components and systems in more than 80 countries.
Hägglunds Drives is an international supplier of complete hydraulic drive systems separate drive motors and services. The group develops manufactures markets and services complete drive systems for applications requiring high torque and variable speeds. The drive systems are used in a wide range of industries such as mining and materials handling marine and offshore recycling sugar pulp and paper as well as dredging. A typical dredge may have a half dozen Hägglunds drives on its winches cutter and pump.
Before the deal Hägglunds was owned by Scandinavian private equity fund Rato under whose stewardship Hägglunds rode a global mining boom to grow its profits by nearly 500 percent between 2001 and 2007.
Back in 2008 Per Nordgren chief executive officer of Hägglunds Drives said “Together with Bosch Rexroth we will be able to further develop our focus on offering complete hydraulic drive systems in several of our existing segments. We will also be able to offer our deliveries of complete hydraulic drive systems to new interesting segments as renewable energy production. Combined with Bosch Rexroth’s strong position on specific markets where we’re not represented today we will have a good position for continued strong growth.”
The German company also has deep pockets for research and development.
Bosch Rexroth promised to keep intact Hägglunds’ brand name office network and identity. So the integration has been careful and deliberate. Its Facebook page for example is called Bosch Rexroth Hägglunds Drives (although there is no information on it yet.)
It wasn’t until exactly a year ago on January 1 2011 that Bosch Rexroth announced that the Hägglunds brand and team were “fully integrated” onto BR.
“The Hägglunds name will still be found on the tough and reliable large hydraulic Hägglunds system solutions that now are a part of the strong Bosch Rexroth portfolio. Bosch Rexroth will continue to produce the excellent system solutions in Mellansel Sweden” the company said.
As part of the integration 15 sales units of Hägglunds’ 22 legal units were gradually transferred to the legal units of Bosch Rexroth. The legal integration was accompanied by a simultaneous integration of Hägglunds sales units into Bosch Rexroth sales units in each country.
In the renewable energies sector Hägglunds Drives products are used to drive machines for producing ethanol and feature in the first prototypes for generating tidal energy.
The acquisition of Hägglunds Drives expanded Rexroth’s industrial hydraulics portfolio allowing Rexroth to gain new potential in growing markets such as renewable energies mining and materials handling.