The companies expects that the acquisition of Baldor advances ABB’s North American industrial motors business.
The transaction, which was originally announced on 30 November 2010, was valued at $4.2bn, including $1.1bn of net debt.
The combination allows ABB to increase its penetration of North American markets by building on Baldor’s strong presence, the companies claimed.
Baldor’s focus on high-efficiency industrial electric motors positions ABB to benefit from a projected 10% to 15% growth in this business in the US in 2011.
Baldor president and CEO Ron Tucker said that the mechanical power transmission products business and ABB’s North American motor and generator business will be headquartered in Fort Smith, Arkansas, US, which is Baldor’s current headquarters location.
