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ABB (NYSE: ABB), Zurich, Switzerland, has agreed to acquire Baldor Electric Company (NYSE: BEZ), Fort Smith, AR, for $4.2 billion, including $1.1 billion of net debt.
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The acquisition enables ABB to penetrate the North American industrial market and closes a gap in ABB's automation portfolio in North America by adding Baldor's NEMA motors product line. It also builds the company's global market presence for industrial motors, including high-efficiency motors, as demand for energy efficient motors and drives continues to grow.
"Baldor is a great company with an extremely strong brand in the world's largest industrial market," said Joe Hogan, ABB's CEO. "Baldor's product range and regional scope are highly complementary to ours and give both companies significant opportunities to deliver greater value to our customers."
Ron Tucker, Baldor's current president and COO will run Baldor including the mechanical power transmission products business and ABB's motor and generator business in North America after the transaction is completed.
Baldor Electric Company manufactures industrial electric motors, mechanical power transmission products, drives and generators, and had sales of $1.29 billion in the first nine months of 2010. Baldor employs about 7,000 people.
ABB is a global power and automation technology company with 117,000 employees in 100 countries.