Sauer-Danfoss Inc., with operations in Ames, announced today that Sauer Holding GmbH, a company owned by the Murmann family, has entered into an agreement to sell 17.5 percent of the outstanding shares of Sauer-Danfoss Inc. to the Danfoss Group. Upon the closing of the transaction, Danfoss will become the majority shareholder in Sauer-Danfoss.

The agreements between the parties, which are subject to certain closing conditions, include options to transfer the remaining portion of the Murmann family’s shares in Sauer-Danfoss, consisting of approximately 20 percent of the outstanding shares, to the Danfoss Group within the next five years.

The agreement evolves from the merger of Sauer Inc. and Danfoss Fluid Power in 2000, forming Sauer-Danfoss Inc. The families behind the two companies are the Murmann family of Germany and the Clausen family of Denmark. Since 2000, Sauer-Danfoss has more than doubled its sales from $850 million to $2 billion, and as a result of the initial merger and the partnership between the two family businesses, Sauer-Danfoss has become a global leader in its field.