Comatrol S.pA. has announced that it has entered into an agreement with Danish-American multinational Sauer-Danfoss Inc. (NYSE:SHS; FSE:SAR) to sell a minority stake in the company and to form a strategic alliance.

The agreement involves both the development and production of cartridge valves and Integrated Hydraulic Circuits (HICs) under the Sauer-Danfoss brand and the marketing, sales and service through the Sauer-Danfoss organization of Comatrol products.

K Finance served as advisor to Comatrol in this transaction.

Comatrol will be a strategic partner of Sauer-Danfoss in the Global Business Unit Hydraulics Valves, led by Vice President Henrik Krabsen, who expressed satisfaction with the agreement.

Comatrol of Reggio Emilia, founded in 1978 and led by the Arduini family, has grown into a technology leader known and respected for the high quality of its products and its customer focus in the fields of agricultural mechanics, earthmoving machinery and lifting equipment. Comatrol has 90 employees and a turnover of about 18 million euros.

Sauer-Danfoss Inc. is a world leader in the design, manufacture and sale of custom hydraulic systems and components used primarily for mobile machinery applications. Sauer-Danfoss, with about 7,000 employees worldwide and a turnover of about 1 billion euros, has plants in Europe, the U.S. and China.