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In the 1980's, Sauer-Danfoss (formerly Sauer-Sundstrand) in Ames, IA, produced a hydraulic transmission that was paired with an axle assembly at the OEM. Agri-Fab in Sullivan, IL, produced an axle assembly that was paired with a transmission at the OEM. Hydro-Gear was founded in 1991 as a joint venture. The initial goal was assembling the transmission and axle combination prior to supplying the OEM. What has resulted is a company with the most repeat customers in the industry.

Today, Hydro-Gear is one of the world's preeminent designer and manufacturer of hydrostatic transmissions, serving multiple industries and exporting product worldwide.
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