ABB completes €2.2bn acquisition of GE's global electrifications business
ABB has bolstered its position as a world leader in electrification technology after completing the €2.2bn acquisition of GE Industrial Solutions (GEIS).
Initially announced in September last year, the Swiss giant's takeover of GE's global electrifications business has now been finalised, with the unit set to be integrated into ABB's Electrification Products (EP) division as a new business unit called Electrification Products Industrial Solutions (EPIS).
By combining ABB’s digital offering, ABB Ability, with the extensive GEIS installed base, both parties can see significant potential value creation. The deal also includes a long-term agreement for ABB to supply GE with products and solutions from across its portfolio.
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“We are very pleased to welcome GE Industrial Solutions to ABB," said its CEO Ulrich Spiesshofer. "The combination reinforces ABB’s position as a worldwide leader in electrification and accelerates our growth and competitiveness in key markets, particularly North America. As one of Thomas Edison’s original businesses, GEIS is the cradle of electrification – a legacy that we will preserve and build on, now that GEIS is part of ABB."
ABB’s EP division President Tarak Mehta added: "The product portfolios of GE Industrial Solutions and ABB are highly complementary. Together we will have a comprehensive combined portfolio, as well as an expanded global footprint, sales force and distribution network."
ABB expects to realise approximately $200mn of annual cost synergies in year five of the agreement, which will be key in bringing GEIS to peer performance.