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20 January, 2018

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TE in talks to buy ABB’s Entrelec terminal block unit

11 January, 2018

TE Connectivity (TE), the connectivity giant formerly known as Tyco Electronics, has entered into exclusive negotiations with ABB to buy ABB’s Entrelec terminal block business. Acquiring the business would allow TE to offer a complete system for power, signal and data connectivity, with a special focus on harsh environments. No financial terms have been revealed.

TE says that the Entrelec range would be a crucial part of its future product portfolio and would help it to offer some of the most comprehensive products, technologies and services in the industry.

Lars Brickenkamp, senior vice-president and general manager of TE’s industrial business, describes Entrelec as “a very effective strategic fit” that will offer new growth opportunities. “It represents an important step in TE’s ability to offer its customers a broader and more complete product platform to help them to reduce complexity and drive innovation,” he adds. “Moreover, the expansion of our industrial team with employees from ABB will significantly enhance TE’s collaboration with more customers on their innovation and automation projects. Closeness to customers will be a key driver for customer satisfaction in our new organisation and, once final, we will work with ABB to ensure a smooth transition of the business.”

ABB acquired the French-based Entrelec for around €310m in 2001, describing it at the time as “a very effective strategic fit for both companies” which would “open up significant new growth opportunities”.

Now, Tarak Mehta, president of ABB's Electrification Products Division, says that combining the terminal block business with TE “demonstrates ABB’s commitment to active portfolio management – a key element of our Next Level strategy.

“TE will be a good owner of this business,” Mehta adds. “The combination of the two portfolios will be more competitive on a larger scale under TE‘s ownership, providing greater opportunities for customers and employees.”

If TE Connectivity's planned acquisition of ABB's Entrelec business go ahead, it will add a comprehensive family of terminal blocks to its portfolio

Entrelec was founded in 1920 and serves customers in more than 70 countries. The business includes research and development, marketing, sales and management activities in Chassieu, France, and manufacturing sites in France and Poland.

TE Connectivity is a $13bn business, with headquarters in Switzerland, and 78,000 employees, that operates in almost 150 countries. It can trace its history back to 1794 when the Rochester Wire & Cable company was formed to manufacture ropes. Another milestone was the formation of  Aircraft Marine Products (AMP) in 1941, which specialised in quick and removable electric connectors. In 1999, Tyco acquired AMP and this formed the basis for Tyco Electronics when Tyco was split into three independent companies in 2007. In 2011, Tyco Electronics changed its name to TE Connectivity.

TE Connectivity’s acquisition of Entrelec is subject to satisfying certain conditions, including receiving regulatory approvals and consultation with bodies representing employees.

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