ABB to acquire Siemens low voltage NEMA motor business
ABB has signed an agreement to purchase Siemens’ low voltage NEMA motor business. With manufacturing operations in Guadalajara, Mexico, the acquisition will provide ABB with a well-regarded product portfolio, a longstanding North American customer base, and experienced operations, sales, and management team.
The business employs around 600 people and generated revenues of approximately USD 63 million in 2021. The transaction is expected to close in the second quarter of 2023, financial terms have not been disclosed.
This transaction offers the opportunity to better support the customers in Mexico with local manufacturing and sales. ABB expects to benefit from 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,” says Tarak Mehta, President ABB Motion, in a press release. “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.”
The global NEMA motor industry, roughly USD 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 such as food and beverage, oil and gas, mining & aggregate, and water & wastewater and in applications like those which move air, liquids, and units.
“We have long appreciated the quality and design of these motors,” adds Jesse Henson, President of ABB’s NEMA motors division. “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.”