Zurich, Switzerland, January 28, 2011 — ABB completed its acquisition of Baldor Electric Co., a North American industrial motor firm.
The transaction, which was originally announced on November 30, 2010, was valued at $4.2 billion, including $1.1 billion of net debt.
The combination provides an even stronger growth platform from which ABB can increase its penetration of North American markets by building on Baldor’s 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 about 17,000.
Baldor’s leadership in high-efficiency industrial electric motors positions ABB to benefit from a projected 10-15 percent growth in this business in the US in 2011 as a result of new energy regulations that were implemented in December 2010.
Similar regulations mandating higher electric motor efficiency are being implemented in numerous countries around the world beginning this year that also will benefit sales of Baldor products.
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, Arkansas, USA, which is Baldor’s current headquarters location. Baldor’s former Chairman and CEO, John McFarland, will remain with the company to support a successful integration.
In connection with the completion of the transaction, Baldor shares have ceased trading on the New York Stock Exchange.