It has fulfilled ABB’s commitment to expand new markets and expand market share.
Establish a production base in Mexico to support future development.
It is expected that the acquisition will bring profit growth points to ABB’s motion control business within two years.
Zurich, Switzerland, August 11th — — ABB announced today that it has signed an agreement to acquire Siemens low-voltage NEMA motor business. The company has a production base in Guadalajara, Mexico, and this acquisition provides ABB with an award-winning product line, a long-term customer base in North America and an experienced operation, sales and management team. The business employs about 600 people and its revenue in 2021 is about 63 million dollars. The financial terms of the transaction were not disclosed, and the transaction is expected to be completed in the second quarter of 2023.
The acquisition is part of ABB’s profit growth strategy of motion control business, which will enable NEMA Motor Division to enhance its product supply, expand its supply chain relationship and improve its support for its North American customer base. At the same time, through local production and sales, there is an opportunity to better support customers in Mexico. ABB hopes to benefit from the identified synergies and make use of R&D expertise, supply chain relations and market access to make the combined product portfolio fully exert its full potential.
"This acquisition has created great value for ABB’s NEMA motor division," said Tarak Mehta, president of ABB’s motion control division. "Investing in North America, especially Mexico, and opening up sales opportunities will make this business a profit growth point of ABB’s motion control business within two years."
"We have always appreciated the quality and design of these motors," added Jesse Henson, president of ABB NEMA Motor Division. "Now that we have seen the leading team behind them, I am more confident that together we can make our merged business develop faster than any of us. We look forward to adding Siemens low-voltage NEMA motor portfolio to our existing ABB and Baode Reliance industrial motor products. "
The global NEMA motor industry is about $2.7 billion, including industrial motors mainly used in North America. NEMA motor is an important part of operating equipment in food and beverage, oil and gas, mining and aggregate, water and wastewater industries, and air, liquid and equipment transportation applications.
The following is an English press release:
ABB to acquire Siemens low voltage NEMA motor business
Zurich, Switzerland | 2022-08-11
ABB expands its low voltage NEMA motor portfolio to further establish itself as a leader in that segment
Delivers on ABB’ s promise to expand into new markets and profitably grow market share
Established manufacturing operations in Mexico to support future growth
Acquisition expected to be margin accretive to the ABB Motion business within 24 months
ABB announced today it has signed an agreement to purchase Siemens’ low voltage NEMA motor business. With manufacturing operations in Guadalajara, Mexico, this acquisition provides a well-regarded product portfolio, a longstanding North American customer base, and an experienced operations, sales, and management team. The business employs around 600 people and generated revenues of approximately $63 million in 2021. Financial terms of the transac tion were not disclosed. The transaction is expected to close in the second quarter of 2023.
This transaction is part of the Motion business area’ s profitable growth strategy, and it will allow the NEMA motors division to enhance its product offering, expand its supply chain relationships, and improve support to its North American customer base. It also offers the opportunity to better support the customers in Mexico with local manufactu ring and sales. ABB expects to benefit from identified synergies, and to use the R&D expertise, supply chain relationships, and market access to bring the combined portfolio to its full potential.
“This bolt-on acquisition creates strong value for ABB’ s NEMA motors division,” said Tarak Mehta, President ABB Motion. “Investing in the business and opening up sales opportunities in North America and especially Mexico will allow this business to be margin accretive to the ABB Motion business within 24 months.”
“We have long appreciated the quality and design of these motors,” Jesse Henson, President of ABB’ s NEMA motors division, added. “Now that we have met the leadership team behind them, I am even more confident that together we can grow our combined businesses faster than either of us could alone. We look forward to adding the Siemens low voltage NEMA motor portfolio to our existing offering of ABB and Baldor-Reliance? industrial electric motors.”
The global NEMA motor industry, roughly $2.7 billion in size, comprises industrial electric motors primarily used within North America. NEMA motors are essential components used to run equipment in industries suc h as food and beverage, oil and gas, mining & aggregate, and water & wastewater and in applications like those which move air, liquids, and units.