ABB to acquire electrical motor maker Baldor Electric for $4.2 billion
01 December 2010
Swiss power and automation technology group ABB Ltd, yesterday said that it will acquire US-based electrical motor maker Baldor Electric Company, for $4.2 billion, including debt of $1.1 billion to become a global leader in industrial motion.
Baldor, based in Fort Smith, Arkansas, is a leading supplier in the large North American industrial motors industry. It offers a broad range of mechanical power transmission products such as mounted bearings, enclosed gearing and couplings – used primarily in process industries – as well as drives and generators.
Baldor employs approximately 7,000 people and reported an operating profit of $184 million on revenue of $1.29 billion in first nine months of 2010.
With 2009 revenues of nearly $32 billion, Zurich-based ABB, which is sitting on a cash pile of $7.1 billion as of end March 2010, has been on an acquisition spree this year. In August it snapped up UK-based Chloride, a provider of uninterruptible power supply equipment, for £860 million. (See: ABB sets up £860 million bidding battle for UK's Chloride with Emerson Electric)
Earlier in May it had acquired Ventyx, a software provider for grid operators from Vista Equity Partners for more than $1 billion in cash, and its Indian arm acquired Bangalore-based Metsys Engineering and Consultancy Pvt Ltd for about Rs8.5 crore. (See: ABB to acquire software firm Ventyx for over $1 billion)
In September its Indian arm, ABB India acquired the unlisted Metsys Engineering and Consultancy Pvt Ltd for about Rs8.5 crore to further strengthen its metal business (See: ABB India acquires Metsys Engineering for Rs8.5 crore)