Last month, Danfoss finalized its acquisition of Italian hose and fittings manufacturer, Alfagomma. I sat down with Domenico Traverso, President, Fluid Conveyance, Danfoss Power Solutions, to learn what this means for both companies going forward and what customers will expect as the combined Alfagomma and the Danfoss Fluid Conveyance division would create a massive leader in hydraulic and industrial hose manufacturing and distribution.
Editor’s note: This transcript was edited for clarity, style and grammar.
Mary Gannon: Before we get started, I wanted to ask about the transition. As Danfoss brings these two companies together, how will the branding and naming process work? I know that in the past Danfoss brought back brands like Aeroquip. How do you see that process unfolding with Alfagomma?
Domenico Traverso: The one thing we can say for sure is that we are going to keep the Alfagomma name. We see a lot of value in the Alfagomma brand itself. Beyond that, we still need to determine how it will be used across the various product lines.
Right now, we’re between signing and closing, so this isn’t something we can fully discuss until the transaction closes. After that, we’ll be able to evaluate the branding strategy, where the value is, and how each brand should be positioned. But again, we’re absolutely committed to keeping the Alfagomma name.
Mary Gannon: This is one of Danfoss’ biggest acquisitions since the Eaton merger. What lessons from that integration will help as you bring these two hose companies together?
Domenico Traverso: There are a lot of lessons learned because the Eaton acquisition was extremely complex. There were many legal entities, many different processes, and a great deal to integrate.
During that process, we developed and refined our post-merger integration process. Many of the tools and procedures we use today at Danfoss actually came out of the Eaton integration. It was such a large and complex project that it helped us build a very solid, well-tested PMI process with clear activities and a defined sequence of events.
We also learned what we don’t want to repeat.
One of the biggest challenges is always the IT side — ERP implementations, digital systems, and internal communication. At the beginning of the Eaton integration, we had two different systems. Internally, we joked about having the “red computer” and the “blue computer.” Several colleagues actually had to work with two computers for a while.
We’re putting a lot of focus on avoiding — or at least minimizing — that situation this time. Our priority is enabling communication as close to Day One as possible, with Teams, email, SharePoint, and the collaboration tools people need, without immediately forcing an ERP migration.
That’s probably one of the biggest differences in our approach.
Mary Gannon: So you’re taking a more measured approach to integrating the business systems?
Domenico Traverso: Exactly. During the Eaton integration, we had a very specific timeline because we had to replace the Eaton ERP system with the Danfoss system. We didn’t really have much flexibility.
With Alfagomma, that’s different. Of course, we’d eventually like everyone to operate on the same IT systems and on SAP, but there’s no immediate pressure to make that happen. Nobody is taking the ERP system away, so as long as it’s working well, we have the flexibility to move at the right pace. There’s no reason to rush it if the existing system continues to support the business.
Mary Gannon: Let’s talk about the product lines and markets. On the surface, it might seem like there’s a lot of overlap between Danfoss and Alfagomma. But are there new opportunities you’ll be able to pursue now that Alfagomma is part of the family?
Domenico: Absolutely — quite a lot, actually. When we first looked at Alfagomma, we already knew it was a strong company, especially in industrial hoses. Like most people, we assumed there would be significant overlap because we appeared to be doing many of the same things.
But once we started looking more closely and learning more about the business, we discovered something surprising: we’re much more complementary than we originally thought. That became one of the things that made this acquisition so attractive.
Yes, there are areas where we overlap, but they’re often in different geographies. In many cases, our capabilities complement one another extremely well. To give you an example, success in the fluid conveyance business — especially industrial and hydraulic hoses — depends on being able to offer both hoses and fittings. Ideally, you also want to assemble them together, but at a minimum you need a complete hose-and-fitting offering.
Before our acquisition of Hydro Holding in Italy last December, we were a major hose producer in Europe, but we didn’t manufacture fittings there. In other regions, like China, we produce excellent fittings but not hoses.
Brazil is another great example of the complementarity between the two companies. Danfoss manufactures hoses there, but not fittings. Alfagomma manufactures fittings there, but not hoses. Together, we can now offer both products in South America, giving us a much stronger position in the market and allowing us to serve customers much more effectively.
That’s just one example. Another area is oil and gas. We do offer some oil and gas hoses today, but it’s not one of our core strengths, and we don’t have a complete portfolio. Alfagomma, on the other hand, has a dedicated manufacturing facility focused specifically on oil and gas hoses. That’s their specialty. They have tremendous expertise and very deep application knowledge in that market.
Mining is another example. We’ve had success in certain mining applications, but we’ve never really established the type of dedicated go-to-market strategy and customer support that the mining industry requires. Mining is a major business for Alfagomma, and that’s something we actually learned during the acquisition process. We hadn’t fully appreciated just how strong they were in that market. Now we have an opportunity to learn from that expertise, build on it, and invest further because they’re already doing a fantastic job.
Mary Gannon: Let’s move to the broader capabilities of the combined company. Alfagomma is a significant global manufacturer, and both companies already have an international footprint. How does bringing those footprints together improve your ability to serve customers, shorten lead times, and respond to regional demand?
Domenico Traverso: That’s really one of the biggest advantages of this acquisition. Like our earlier Hydro Holding acquisition, this brings us much closer to the market. Both Danfoss and Alfagomma are global companies, but each of us had gaps in different parts of the world. Now many of those gaps are filled. That allows us to take a much more regional approach instead of moving products across continents. We can be more focused within North America, South America, Europe, Africa, and Asia. Previously, we often had one piece of the puzzle but not the others. Now we’re putting almost all of those pieces together.
Malaysia is a great example. Alfagomma has an excellent manufacturing facility there that produces both hydraulic and industrial hoses. We had only a very small hydraulic hose operation in the Asia-Pacific region, located in Singapore, but we were never able to scale it to the level we wanted or offer the complete portfolio that market requires. This acquisition changes that. It gives us a much stronger position in Asia-Pacific while also allowing us to build a much more complete global manufacturing footprint.
Ultimately, our goal is to reduce as much cross-continent shipping as possible by serving customers closer to where they operate.
Mary Gannon: You’ve touched on this already, but I’d like to look at the bigger picture. Danfoss has been investing heavily in fluid conveyance. Eaton already had a strong hose business, and since that acquisition you’ve continued to expand. Does this acquisition represent the vision you’ve been working toward, or do you still see significant room for growth?
Domenico Traverso: I definitely think there’s still a lot of room for growth. As you mentioned, we’ve been growing rapidly. Fluid Conveyance is one of the fastest-growing businesses within Danfoss, and that growth is coming not only through acquisitions but also organically.
When we acquired Eaton in 2021, fluid conveyance was a business we didn’t know particularly well. The rest of the portfolio was familiar — we understood the products and the markets — but fluid conveyance was something new for us. The more we’ve learned about it, the more we’ve realized just how exciting the market is.
It’s much larger than we originally imagined. Every time you explore another segment, you discover an entirely new market with its own applications and customer needs. Whether it’s biotech, medical, hydraulics, oil and gas, food processing, or industrial manufacturing, every time you open another bucket, you realize you’ve only scratched the surface.
That’s why we believe there’s still tremendous opportunity.
This acquisition strengthens our leadership position in industrial hoses, but there are still many markets for us to explore. Every time we look deeper, we find another opportunity. At the end of the day, almost every industry needs to move a fluid or a liquid from one place to another. That’s what makes fluid conveyance such an attractive business. The opportunities are everywhere, and we believe we can continue expanding in many different directions.
Mary Gannon: Looking ahead, hoses are a critical part of every hydraulic system. People sometimes think of them as commodities, but they’re really one of the most important components in the machine. How do you see innovation continuing to evolve, particularly as equipment becomes more electrified, more automated, and more demanding?
Domenico Traverso: Innovation is continuous, and it’s not limited to hydraulic hoses. It applies across every type of hose we manufacture. Sometimes innovation means developing products that have never existed before, but even within traditional industrial and hydraulic hoses, there’s constant development because machines continue demanding higher performance.
Take Aeroquip, for example. It’s already recognized as one of the highest-performing hose brands in the world, offering exceptional heat resistance, abrasion resistance, and overall durability. Even so, we recently launched our new Edge Series, which represents another significant step forward. When you compare it to the previous generation, the performance improvements are dramatic, even though Aeroquip was already considered best in class.
The market response has been extremely strong because customers are asking for hoses that last longer, require less maintenance, extend service intervals, and provide greater confidence that the machine won’t experience unexpected downtime. That demand isn’t going away.
Innovation will certainly continue in terms of improving performance, but I also believe it will increasingly focus on sustainability. At Danfoss, sustainability and reducing carbon footprint are major priorities. We’re looking at how to make our products more circular, how to incorporate more recycled materials, and how to deliver premium performance while reducing environmental impact.
I think that’s where much of the research over the next five years will be focused. One advantage of operating at this scale is that we can make those investments. Developing new materials requires extensive testing, validation, and a willingness to take risks. When you’re producing at a large scale, you have the resources to invest in that work and develop products that combine premium performance with a lower environmental footprint. That’s a very important direction for us.
Mary Gannon: Is there anything else you’d like to share with the Fluid Power World audience about what this acquisition means as these two companies come together?
Domenico Traverso: For us, this is an incredibly exciting moment. Hydraulics is at the core of what Danfoss does. It’s one of our core businesses, and we’re committed to continuing to strengthen our position in the market.
With this acquisition, we’re building a company that has a much stronger regional presence around the world. That’s important because today we still move a great deal of product from one continent to another. By expanding our manufacturing footprint, we’ll be able to reduce that significantly. That’s good for several reasons. It improves our supply chain performance, it allows us to be closer to our customers, and it also reduces the environmental impact associated with transporting products around the world.
Our goal is to serve customers locally whenever possible. Being able to provide both hoses and fittings within the same region is a significant advantage, and it’s something we believe will differentiate us in the marketplace. Customers will have access to a more complete offering without relying on products being shipped from other parts of the world.
As a company, we’ve never believed that success comes simply from chasing the lowest-cost labor or moving production wherever labor happens to be cheapest. Instead, we invest where our customers are. When we establish manufacturing in a region, it’s because we believe in that market and want to support its long-term growth. We want to be close to customers, understand their needs, and grow alongside them.
I think that’s where this acquisition really makes a difference. It allows us to support our global customers with a stronger regional presence almost everywhere they operate.
Filed Under: Components, Hose & Tubing, News
