ABB signs purchase agreement to acquire Siemens NEMA motor business
August 22, 2022 by Manufacturing AUTOMATION
ABB signed a purchase agreement to acquire Siemens’ low voltage NEMA motor business. With this acquisition, ABB expands its NEMA motors portfolio.
ABB’s acquisition move is part of its growth strategy for its motion business. It will allow the company’s NEMA motors division to enhance its product offering, expand its supply chain relationships and improve support to its North American customer base. It also offers the opportunity to better support the customers in Mexico with local manufacturing and sales. ABB expects to benefit from identified synergies and to use the R&D expertise, supply chain relationships and market access to bring the combined portfolio to its full potential.
“This bolt-on acquisition creates strong value for ABB’s NEMA motors division,” said Tarak Mehta, president of ABB Motion. “Investing in the business and opening up sales opportunities in North America and especially Mexico will allow this business to be margin accretive to the ABB Motion business within 24 months.”
The manufacturing operation of the Siemens NEMA motors business is in Guadalajara, Mexico. The acquisition brings with it the product portfolio, an established North American customer base and a team of experienced management, operations and sales personnel. The business segment employs around 600 people and generated revenues of approximately $63 million in 2021.
“We have long appreciated the quality and design of these motors,” added Jesse Henson, president of ABB’s NEMA motors division. “Now that we have met the leadership team behind them, I am even more confident that together we can grow our combined businesses faster than either of us could alone. We look forward to adding the Siemens low voltage NEMA motor portfolio to our existing offering of ABB and Baldor-Reliance industrial electric motors.”