ABB to Acquire GE Industrial Solutions
ABB today announced the acquisition of GE Industrial Solutions, GE’s global electrification solutions business. GE Industrial Solutions has deep customer relationships in more than 100 countries and an established installed base with strong roots in North America, ABB’s biggest market. GE Industrial Solutions is headquartered in Atlanta, Georgia, and has about 13,500 employees around the world. In 2016, GE Industrial Solutions had revenues of approximately $2.7 billion, with an operational EBITDA margin of approximately 8 percent1 and an operational EBITA margin of approximately 6 percent1. ABB will acquire GE Industrial Solutions for $2.6 billion; the transaction will be operationally accretive in year one. ABB expects to realize approximately $200 million of annual cost synergies in year five, which will be key in bringing GE Industrial Solutions to peer performance. As part of the transaction and overall value creation, ABB and GE have agreed to establish a long-term, strategic supply relationship for GE Industrial Solutions products and ABB products that GE sources today.
“With GE Industrial Solutions, we strengthen our Number 2 position in electrification globally and expand our access to the attractive North American market,” said ABB CEO Ulrich Spiesshofer. “Combined with the long-term strategic supply relationship with GE, this transaction creates significant value for our shareholders.”
He added: “Together with the GE Industrial Solutions team, we will execute our well-established plans in a disciplined way to bring this business as part of the global ABB family back to peer performance. With this next step of active portfolio management, we continue to shift ABB’s center of gravity, in line with our Next Level strategy, by strengthening competitiveness, mainly in the North American market, and lowering risk with an early-cycle business.”
“This combination brings together two global businesses with a broad complement of electrical protection and distribution assets,” said John Flannery, CEO of GE. “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.”
GE Industrial Solutions will be integrated into ABB’s Electrification Products (EP) division, resulting in a unique global portfolio and very comprehensive offering for North American and global customers. They will benefit from ABB’s innovative technologies and the ABB AbilityTM digital offering coupled with GE Industrial Solutions’ complementary solutions and market access. Included in the acquisition is a long-term right to use the GE brand. ABB will retain the GE Industrial Solutions management team and build upon its experienced sales force. After closing, this transaction will have an initial dampening effect to EP’s operational EBITA margin. ABB commits to returning EP to its target margin corridor of 15-19 percent during 2020.
Tarak Mehta, President of ABB’s EP division, said: “This acquisition strengthens our position as partner of choice for electrification globally and in North America. We look forward to working with GE Industrial Solutions’ and ABB’s customers and channel partners to create new opportunities in this highly attractive core market for our division. We have a clear integration plan to realize the synergies of this combination and to bring our combined business back into the target margin corridor during 2020.”
ABB’s EP division delivers more than 1.5 million products to customers around the world every day through a global network of channel partners and end-customers. EP offers a comprehensive portfolio of low- and medium-voltage products and solutions for a smarter, more reliable flow of electricity from substation to socket.
Given this transaction, ABB has decided to put the previously announced share buyback program on hold.
The transaction is expected to close in H1 2018, subject to customary regulatory clearances. Credit Suisse and Dyal Co. acted as financial advisors to ABB, and Davis Polk & Wardwell provided legal counsel.
ABB will host a press conference today starting at 9:00 a.m. Central European Time (CET) (8:00 a.m. BST, 3:00 a.m. EDT). The event will be accessible by conference call. Callers from the UK should dial +44 207 107 06 13. From Sweden, the number to dial is +46 85 051 00 31, and from the rest of Europe, +41 58 310 50 00. Callers from the US and Canada should dial +1 866 291 41 66 (toll-free) or +1 631 570 56 13 (long-distance charges apply). Lines will be open 10-15 minutes before the start of the call.
A conference call and webcast for analysts and investors is scheduled to begin today at 12:00 p.m. CET (11:00 a.m. BST, 6:00 a.m. EDT). Callers from the UK should dial +44 207 107 06 13. From Sweden, the number to dial is +46 85 051 00 31, and from the rest of Europe, +41 58 310 50 00. Callers from the US and Canada should dial +1 866 291 41 66 (toll-free) or +1 631 570 56 13 (long-distance charges apply). Callers are requested to phone in 10 minutes before the start of the call. The call will also be accessible on the ABB website and a recorded session will be available as a podcast one hour after the end of the conference call and can be downloaded from our website. www.abb.com/investor relations
About GE Industrial Solutions
Since Thomas Edison patented the world’s first circuit breaker, GE Industrial Solutions has been transforming the future of electrification. We design electrical solutions at the crossroads of digital and industrial – smart, rugged and equipped to control electricity from the grid to its point of use. Every day, we partner with our customers to solve their toughest energy challenges and reimagine industry in a way that only the world’s digital industrial company can. http://www.geindustrial.com/
GE (NYSE: GE) is the world’s Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive. GE is organized around a global exchange of knowledge, the "GE Store," through which each business shares and accesses the same technology, markets, structure and intellect. Each invention further fuels innovation and application across our industrial sectors. With people, services, technology and scale, GE delivers better outcomes for customers by speaking the language of industry. www.GE.com
ABB (ABBN: SIX Swiss Ex) is a pioneering technology leader in electrification products, robotics and motion, industrial automation and power grids, serving customers in utilities, industry and transport & infrastructure globally. Continuing more than a 125-year history of innovation, ABB today is writing the future of industrial digitalization and driving the Energy and Fourth Industrial Revolutions. ABB operates in more than 100 countries with about 136,000 employees. www.abb.com
ABB has invested more than $11 billion in the United States since 2010 and employs approximately 20,000 people across the country, with more than 60 R&D and manufacturing sites nationwide.
Important notice about forward-looking information
This press release contains "forward-looking statements" relating to the acquisition of GE Industrial Solutions by ABB. Such forward-looking statements can be identified by words such as plans, intends, expects, commits and other similar terms. Such forward-looking statements are based on current expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change any of them, and could cause actual outcomes and results to differ materially from current expectations. No forward-looking statement can be guaranteed. Among other risks, there can be no guarantee that the acquisition will be completed, or if it is completed, that it will close within the anticipated time period or that the expected benefits of the acquisition will be realized. Forward-looking statements in the press release should be evaluated together with the many uncertainties that affect ABB's business, particularly those identified in the cautionary factors discussion in ABB's Annual Report on Form 20-F for the year ended December 31, 2016. ABB undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.
1 2016 GE Industrial Solutions financial information adjusted to ABB financial definition
Om Business Wire
(c) 2018 Business Wire, Inc., All rights reserved.
Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.
Følg saker fra Business Wire
Registrer deg med din epostadresse under for å få de nyeste sakene fra Business Wire på epost fortløpende. Du kan melde deg av når som helst.
Siste saker fra Business Wire
FCC Grants LeoSat U.S. Market Access16.11.2018 06:00 | Pressemelding
LeoSat Enterprises, the dynamic young company which is launching a unique new data network comprised of a constellation of up to 108 low-earth-orbit communications satellites, has been awarded the authority by the U.S. Federal Communications Commission (FCC) to provide NGSO (non-geostationary satellite orbit) services in the United States. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181115005890/en/ LeoSat's Global Business Backbone in Space (Graphic: Business Wire) The increasing demand for business connectivity and with it, the need to move large quantities of data quickly and securely around the world, is fast outpacing the infrastructure in place to carry it. Existing networks are already carrying more than 1 Zeta Byte of traffic globally and this is set to grow exponentially. The FCC market access grant will allow LeoSat to address currently unmet demand for high-bandwidth, low-latency, high-security data transmissio
German Court Rules Huawei, ZTE Products Infringe AVC Patents16.11.2018 05:01 | Pressemelding
MPEG LA announced today that the District Court in Düsseldorf, Germany (“Landgericht Düsseldorf”) has ruled that Huawei Technologies Deutschland GmbH (“Huawei”) and ZTE Deutschland GmbH (“ZTE”) infringed patents of two patent holders in MPEG LA’s AVC Patent Portfolio License (“AVC License”) by using their technologies in mobile phones that implement the AVC/H.264 (MPEG-4 Part 10) Standard. The court also found that the license offered by the patent holders under those patents through the AVC License is fair, reasonable and nondiscriminatory. “The Landgericht Düsseldorf’s decision confirms the importance of respect for intellectual property, and offering everyone easy and affordable access to essential AVC technology under a single license is a cornerstone of the MPEG LA AVC License’s wide acceptance making that possible,” said Larry Horn, President and CEO of MPEG LA. “We continue to welcome Huawei and ZTE to join the nearly 2,000 Licensees who have entered into our AVC License.” Verdi
IFF-LMR Naturals Leads Industry with 90 Certified Vegan Natural Extracts15.11.2018 21:15 | Pressemelding
Regulatory News: IFF-LMR, a subsidiary of International Flavors & Fragrances Inc (NYSE:IFF) (Euronext Paris: IFF) (TASE: IFF) announced their industry-leading position of 90 natural extracts in their portfolio certified vegan by the EVE (Expertise Vegan Europe) VEGAN standards. The certified extracts include Rose EssentialTM, Rose UltimateTM, Blackcurrant Buds Absolute, Ylang Oil Complete, Vetiver Oil Haiti, Patchouli Oil Indonesia, and Geranium Heart Oil, among many others. Bertrand de Preville, General Manager, IFF-LMR said, “Our people are passionate about creating the finest ingredients and together, we are committed to delivering premium, 100% pure and natural extracts. We believe in transparency, environmental management and sustainable development.” Mr. de Preville continued, “This certification of 90 extracts is in line with IFF-LMR’s continuous dedication to our planet, people, plants and animals.” The EVE VEGAN label was selected because it is considered one of the most rigor
Rimini Street Expands Investment and Operations in Asia-Pacific15.11.2018 20:00 | Pressemelding
Rimini Street, Inc. (Nasdaq: RMNI), a global provider of enterprise software products and services, and the leading third-party support provider for Oracle and SAP software products, today announced that it has expanded its operations in the Asia-Pacific region with the launch of its new subsidiary, Rimini Street New Zealand Limited, and the opening of its new office in Auckland to address the growing demand for Rimini Street’s premium, ultra-responsive support services in New Zealand. Rimini Street’s expansion was announced at a gala event held at The Northern Club in Auckland, where clients, local IT leaders and the special guest of honor, Ambassador Scott P. Brown, the U.S. Ambassador to New Zealand, were hosted by Rimini Street’s general manager for Asia-Pacific, Andrew Powell, and Rimini Street corporate senior executives. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181115005037/en/ Rimini Street launches subsidiary
Sartorius Stedim Biotech and Lonza Modify Relationship for Supply of Cell Culture Media15.11.2018 18:15 | Pressemelding
Sartorius Stedim Biotech (SSB) (Paris:DIM), a leading international supplier of the biopharmaceutical industry, and Lonza announced today that they have modified their current agreement for supply of cell culture media by mutual accord. The agreement, signed in 2012, gave SSB exclusive sales and marketing rights for certain cell culture media and buffers developed and manufactured by Lonza for use in biopharmaceutical manufacturing processes. Lonza retained sales for research-based products, among others. Under agreements signed today, SSB will continue to offer current and future Lonza media and buffers on a non-exclusive basis as part of its extensive portfolio of products for cell-based development and manufacturing. Lonza Pharma & Biotech resumes sales and marketing of all its media products for both manufacturing and research. Customers of both companies will continue to be able to source media products for their specific needs. “We have a long-standing and productive partnership
Intertops Poker Launches its 20 Event Strong SOFT Series for its Recreational Player Base15.11.2018 17:46 | Pressemelding
Intertops Poker has launched a new tournament series aimed and created for its recreational and casual player base, with impressive prizes up for grabs. The Intertops Poker SOFT Series is spread across 20 events and offers a combined prize pool of $24,850, including a $4,100 World Series of Poker Caribbean prize package. The series starts on 19th November and will conclude on 25th November. It is available to players from all countries and markets wanting to test their skills and have fun at the tables. There are a wide range of buy-ins to suit all budgets, and the tournament kicks-off with two $500 freerolls before the series gets underway proper on 20th November. Each SOFT Series event winner will receive an Intertops Poker Soft Series Champion hoodie and a seat at the table for the Champions Tournament. The highlight of the series, the Champions Tournament takes place on 25th November at 6:30pm ET and has a guaranteed World Series of Poker Caribbean prize worth $4,100. The World Ser