Robotics, automation and motors manufacturer ABB announced Aug. 10 that it has reached a deal to buy Siemens’ low voltage NEMA motors business for an undisclosed amount.

With production operations in Guadalajara, Mexico, NEMA has approximately 600 employees and had 2021 revenues of about $63 million. The transaction is expected to close in 2023’s second quarter.

ABB said the acquisition provides it a well-regarded product portfolio, a longstanding North American customer base and an experienced operations, sales and management team.

“This bolt-on acquisition creates strong value for ABB’s NEMA motors division,” said 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.”

ABB said the deal is part of its Motion business area’s profitable growth strategy and will allow the NEMA motors division to enhance its product offering, expand its supply chain relationships and improve support to its North American customer base. ABB added that the acquisition also offers the opportunity to better support the customers in Mexico with local manufacturing and sales. ABB expects to benefit from identified synergies, and to use the R&D expertise, supply chain relationships and market access to bring the combined ABB Motion portfolio to its full potential.

“We have long appreciated the quality and design of these motors,” said 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.”

ABB noted that the global NEMA motor industry is roughly $2.7 billion in size and comprises industrial electric motors primarily used within North America. NEMA motors are essential components used to run equipment in industries such as food and beverage, oil and gas, mining & aggregate and water & wastewater and in applications like those which move air, liquids and units.