Expected to close in the first half of 2018, ABB’s recent acquisition of GE Industrial Solutions will be operationally accretive in year one and valued at 2.6 billion. GE Industrial Solutions will become part of ABB’s Electrification Products (EP) division.
By establishing a long-term, strategic supply relationship for both company’s products, ABB EP expects to strengthen its position as the #2 global company in electrification solutions. It will use GE’s established customer relationships, large installed base, and distribution networks to expand its presence in North America, and will have the right to use the GE brand long-term.
“Combined with the long-term strategic supply relationship with GE, this transaction creates significant value for our shareholders,” says ABB CEO Ulrich Spiesshofer.
Through the combination of ABB’s innovative technologies, such as the ABB Ability digital offering, and GE Industrial Solutions’ complementary solutions, the companies expect to create a unique electrification product portfolio for industrial, transport, and infrastructure applications.
“This combination brings together two global businesses with a broad complement of electrical protection and distribution assets,” said John Flannery, CEO of GE in a statement. “GE will also benefit through an expanded strategic supply relationship with ABB as the two companies work together.”
For more information about the acquisition, and how it might influence the stocks of both companies, read the announcement in ABB’s Media Center.