ABB completes acquisition of Baldor Electric
February 7, 2011 by Manufacturing AUTOMATION
ABB Ltd. has completed its acquisition of Baldor Electric Co., a provider of industrial motors. The transaction, which was originally announced on November 30, 2010, was valued at $4.2 billion US, including $1.1 billion US of net debt.
The acquisition of Baldor advances ABB’s strategy to become a leader in the North American industrial motors business and a global leader for movement and control in industrial applications. The combination provides an even stronger growth platform from which ABB can increase its penetration of North American markets by building on Baldor’s strong presence, while at the same time facilitating the sale of Baldor’s products globally through ABB’s worldwide distribution network. The addition of Baldor’s around 6,800 North American employees brings the number of ABB’s employees in North America to approximately 17,000.
Ron Tucker, Baldor’s president and CEO, will be responsible for running Baldor, including its mechanical power transmission products business, as well as ABB’s North American motor and generator business. These businesses will be headquartered in Fort Smith, Ark., which is Baldor’s current headquarters. Baldor’s former chairman and CEO, John McFarland, will remain with the company to support a successful integration.