Swiss engineering company ABB has announced the acquisition of GE Industrial Solutions, GE’s global electrification solutions business, for $2.6 billion.
Headquartered in Atlanta, Georgia, GE has about 13,500 employees globally and had revenues of approximately $2.7 billion in 2016.
ABB CEO Ulrich Spiesshofer, said that combined with the long-term strategic supply relationship with GE, this transaction creates significant value for shareholders.
“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," he said. "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.”
GE CEO, John Flannery, who took over on August 1, said this new combination brings together two global businesses with a broad complement of electrical protection and distribution assets.
“ABB values our people, domain expertise, and our ability to operate in the segments where we have depth and experience. GE will also benefit through an expanded strategic supply relationship with ABB as the two companies work together," Flannery said.
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.
"They will benefit from ABB’s innovative technologies and the ABB AbilityTM digital offering coupled with GE Industrial Solutions’ complementary solutions and market access," he said.
Included in the acquisition is a longterm right to use the GE brand. ABB will retain the GE Industrial Solutions management team and build upon its experienced sales force.