Danfoss has entered into an exclusivity agreement to acquire Italy-based Alfagomma Group in a move that would expand the Denmark-based manufacturer’s position in hydraulic and industrial hose manufacturing and distribution.

Terms of the agreement were not disclosed. Danfoss said the intended acquisition aligns with its LEAP 2030 strategy, which includes accelerating profitable growth within its Fluid Conveyance division — a core business inside the company’s Danfoss Power Solutions segment.

Danfoss is a family-owned global manufacturer of climate solutions, power electronics, drives, mobile and industrial hydraulics, and related technologies. The company generated 2025 revenue of about $10.8 billion and employs approximately 39,000 people worldwide. Danfoss’ primary U.S. headquarters is in Baltimore, while its Power Solutions unit operates out of Ames, IA and its software hub is in Loves Park, IL.

Alfagomma, headquartered in Vimercate, Italy, manufactures hoses, fittings, couplings and connectors for hydraulic and industrial applications under brands of Alfagomma, Dunlop Hiflex, Argus and HiFlex. The company has approximately $690 million in annual sales, 4,500 employees and operations across 28 production and assembly sites globally.

“The potential acquisition of Alfagomma marks a significant step forward in our ambition to become a leader in the global fluid conveyance market,” Danfoss President and CEO Kim Fausing said in a June 12 announcement. “Alfagomma’s strong product portfolio, customer relationships and global footprint are highly complementary to our existing business.”

Danfoss said combining Alfagomma with its Fluid Conveyance business would create a global leader in hydraulic and industrial hose manufacturing and distribution. The company added that Alfagomma’s product portfolio and manufacturing footprint would complement Danfoss’ existing hydraulic hose and fittings capabilities.

Alfagomma’s Board of Liquidators said in a separate announcement that Danfoss’ industrial platform, existing presence in Italy and family-controlled ownership structure were key factors in the agreement. The board said the potential transaction is aimed at providing Alfagomma with a stable ownership structure and support for long-term development.

The transaction remains subject to customary approvals and closing conditions.