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.
ABB (NYSE:ABB), the leading power and automation technology group, and Baldor Electric Company (NYSE:BEZ), a North American leader in industrial motors, have agreed that ABB will acquire Baldor in an all-cash transaction valued at approximately $4.2 billion, including $1.1 billion of net debt.
Under the terms of the definitive agreement, which has been unanimously approved by both companies' Boards of Directors, ABB will commence a tender offer to purchase all of Baldor's outstanding shares for $63.50 per share in cash. The transaction represents a 41 percent premium to Baldor's closing stock price on Nov. 29, 2010. The Board of Directors of Baldor will recommend that Baldor shareholders tender their shares in the tender offer. The deal is expected to close in the first quarter of 2011.