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ABB buys Siemens’ LV Nema motors arm to boost growth

11 August, 2022

ABB has agreed to buy Siemens’ low-voltage Nema motors operation for an undisclosed sum. The business, which has manufacturing operations in Guadalajara, Mexico, produces motors mainly for the North America market. It employs about 600 people and last year generated revenues of around $63m.

ABB says that the transaction is part of its growth strategy for its Motion business. The deal will enhance the product offering of its Nema motors division, expand its supply chain relationships, and improve support for North American customers.

ABB adds that the acquisition will further establish itself as a leader in the Nema motors market and deliver on its promise to expand into new markets and to grow its market share profitably.

“This bolt-on acquisition creates strong value for ABB’s Nema motors division,” says Tarak Mehta, president of ABB Motion. “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.”

“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.”

Siemens’ LV Nema motors business, which ABB is buying, has manufacturing operations in Mexico

The transaction is expected to close in the second quarter of 2023. ABB expects to benefit from synergies, and to use the new business’ r&d expertise, supply chain relationships, and market access, to bring the combined portfolio to its full potential.

The global Nema motor industry, worth roughly $2.7bn, consists of industrial electric motors mainly used in North America.

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