ZURICH, Switzerland and FORT SMITH, Ark., Nov. 30, 2010 (GLOBE NEWSWIRE) --
- Agreed transaction: ABB and Baldor announce a recommended offer for ABB to acquire Baldor for $63.50 per share, an overall transaction value of $4.2 billion, including net debt of $1.1 billion.
- In line with ABB's strategy: establishes ABB as a leader in the multibillion dollar North American industrial motors business and a global leader for movement and control in industrial applications (industrial motion).
- Highly complementary portfolios: combination of Baldor's leading position in North American motors and ABB's global leading position in drives and motors.
- Creates growth: this acquisition will enable ABB to penetrate the North American industrial market by using Baldor's strong North American market access; will allow Baldor to expand globally by using ABB's distribution network abroad.
- Right time: additional growth for energy efficient motors and drives through the upcoming implementation of new energy efficiency regulations in the U.S. and other markets.
- Continuity: ABB retains Baldor management and brand. Fort Smith remains the headquarters for Baldor, and becomes the headquarters for the combined motor and generator business for North America.
- Significant synergies: more than $100 million annual cost synergies and significant global revenue synergies of at least the same amount expected.
- Value creating: transaction expected to be earnings accretive in year one.