ABB completed its acquisition of Baldor Electric, a deal originally announced Nov. 30. Valued at more than $4 billion, including some $1 billion of net debt, the acquisition helps the Swiss ABB make a move into the North American industrial motors business and also strengthens its lead for movement and control in industrial applications.
Because of new energy regulations put into effect last month, the high-efficiency industrial electric motor market is expected to grow some 10-15% in the U.S. this year. ABB hopes to be in a better position to capture more of that market as a result of the Baldor acquisition. “Today marks a significant step forward in ABB’s strategy to become the global leader in the industrial motion market,” says Joe Hogan, ABB’s CEO.
The addition of Baldor’s approximately 6,800 North American employees brings the number of ABB employees in North America to about 17,000. Ron Tucker, Baldor’s president and CEO, will run Baldor, including its mechanical power transmission products business, as well as ABB’s North American motor and generator business. These businesses will be headquartered at Baldor’s current headquarters in Fort Smith, Ark. John McFarland, for Baldor chairman and CEO, will remain with the company.
In connection with the completion of the transaction, Baldor shares have ceased trading on the New York Stock Exchange.
