ABB has declared the completion of acquirement of Baldor Electric Company, for $4.2 billion. The acquisition plan was originally declared by ABB on November 2010.
The merger has enabled ABB to dominate the industrial motor business segment of North America and to become a leading supplier of control and movement solutions for several industries.
The acquisition has also facilitated the sale of Baldor’s industrial solutions via global delivery channels of ABB. 6,800 employees of Baldor will join ABB, increasing ABB’s North American employees to around 17,000.
Baldor’s domination in the North American motor fabrication market will offer significant business growth of 10-15% for ABB in the United States, following the newly implemented energy norms. Similar norms demanding improved performance of electric motor are being executed in several nations.
Ron Tucker, President and CEO of Baldor Electric, will head not only Baldor’s operations and also ABB’s generator and motor business in North America. The headoffice will be the current headquarters of Baldor , which is located in Fort Smith, Arkansas.
Joe Hogan, CEO of ABB, has stated that Baldor is well known for its technology, service and product quality. He added that the merger will enable them to offer innovative solutions for their clients.
Citi acted as ABB’s financial advisor during the acquisition procedures and also served as the dealer-manager. ABB’s legal counsel were Jones Day and Ellis LLP. Baldor’s financial advisor was UBS Financial Services and Thompson Coburn and Gibson, Dunn & Crutcher served as legal counsel.
Source: http://www.abb.com