Sources: ABB, Zurich; Baldor Electric Co., Fort Smith, Ark.; CP staff
ABB’s planned $4.2 billion acquisition of Baldor Electric will coincide with projected 10-15 percent sales gains in high-efficiency motors—the latter company’s core product. The 2011 sales boost stems from federal regulations, effective this month, setting new energy efficiency standards for such equipment sold in the U.S. The transaction closes a gap in ABB’s North American automation portfolio by adding a strong NEMA motor product line and positions the Swiss company as industrial motor market leader and with new mechanical power transmission business prospects.
The transaction will substantially improve ABB’s access to the industrial customer base in North America, opening opportunities for a wider portfolio of energy efficient drives and complementary motors. “ABB and Baldor will be able to offer North American and global customers an unparalleled range of high-efficiency industrial products and services,” said Ulrich Spiesshofer, Executive Committee member responsible for ABB Discrete Automation and Motion. Baldor operations will be integrated in that division, alongside ABB’s Motors and Generators business, the new base of which will be Baldor’s Arkansas headquarters.