Headquartered in Atlanta, GE Industrial Solutions employs around 13,500 people and had recorded revenues of nearly $2.7bn in 2016.
As part of the agreement and overall value creation, ABB and GE will create a long-term, strategic supply relationship for GE Industrial Solutions products and ABB products sourced by GE.
ABB CEO Ulrich Spiesshofer said: “With GE Industrial Solutions, we strengthen our Number 2 position in electrification globally and expand our access to the attractive North American market.
“Combined with the long-term strategic supply relationship with GE, this transaction creates significant value for our shareholders.”
ABB plans to integrate GE Industrial Solutions into its Electrification Products (EP) division to create a distinctive global portfolio and very comprehensive offering for North American and other customers across the world.
EP’s portfolio includes low- and medium-voltage products and solutions for a smarter, more reliable flow of electricity ranging from substation to socket.
Through the acquisition, ABB will have a long-term right to use the GE brand.
GE CEO John Flannery said: “This 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.”
Subject to customary regulatory clearances, the transaction is anticipated to be completed in the first half of next year.
Image: A 275kV substation in the UK which was digitalized by ABB. Photo: courtesy of ABB.
