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ABB finalises $2.6bn acquisition of GE Industrial Solutions

03 July, 2018

ABB has completed its $2.6bn acquisition of GE Industrial Solutions (GEIS), GE’s global electrification solutions business, to strengthen its position as global number two in this sector, behind Schneider Electric. The transaction, announced in September 2017, is expected to produce growth opportunities from combining ABB’s digital offering, ABB Ability, with GEIS’ installed base, and is forecast to deliver about $200m of annual cost synergies by year five.

GEIS will be integrated into ABB’s Electrification Products (EP) division, led by Tarak Mehta, as a new business called Electrification Products Industrial Solutions (EPIS). Stephanie Mains, who was previously president and CEO of GE Industrial Solutions, will lead the new business as managing director. As part of the transaction, ABB has established a long-term strategic relationship to supply GE with products and services from its portfolio. ABB has a long-term right to use the GE brand.

“The product portfolios of GE Industrial Solutions and ABB are highly complementary,” says Mehta. “Together we will have a comprehensive combined portfolio, as well as an expanded global footprint, sales force and distribution network.

“We are committed to servicing the GEIS installed base and will now be able to provide a more technologically advanced and digitally connected offering to our customers around the world,” he adds. “Together, we will strengthen ABB’s number two position in electrification globally, and expand our access to the attractive North American market.”

Mehta: deal strengthens ABB's global number two position

ABB’s CEO Ulrich Spiesshofer says that 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.”

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