Manufacturer acquires electric solutions company
ABB announced the acquisition of GE Industrial Solutions, GE’s global electrification solutions business. GE Industrial Solutions has customer relationships in more than 100 countries and an established installed base with strong roots in North America. GE Industrial Solutions is headquartered in Atlanta, Georgia, and has about 13,500 employees around the world. ABB will acquire GE Industrial Solutions for $2.6 billion; the transaction will be operationally accretive in year one. As part of the transaction and overall value creation, ABB and GE have agreed to establish a long-term, strategic supply relationship for GE Industrial Solutions products and ABB products that GE sources today.
ABB CEO Ulrich Spiesshofer said that this acquisition is intended to solidify their position in the North American market and provide long-term value. “Together with the GE Industrial Solutions team, we will execute our well-established plans in a disciplined way to bring this business as part of the global ABB family back to peer performance. With this next step of active portfolio management, we continue to shift ABB’s center of gravity, in line with our Next Level strategy, by strengthening competitiveness, mainly in the North American market, and lowering risk with an early-cycle business.”
“This combination brings together two global businesses with a broad complement of electrical protection and distribution assets,” said John Flannery, CEO of GE.
GE Industrial Solutions will be integrated into ABB’s Electrification Products (EP) division, resulting in a unique global portfolio and very comprehensive offering for North American and global customers. Included in the acquisition is a long-term right to use the GE brand. ABB will retain the GE Industrial Solutions management team and build upon its experienced sales force.
GE Industrial Solutions
– Edited from an ABB press release by CFE Media. See more Control Engineering energy and power stories.