Swiss-based engineering concern ABB is to buy United States industrial motors firm Baldor Electric for $3.1 billion (SFr3.09 billion), plus $1.1 billion net debt.
The agreed price of $63.50 a share represented a 41 per cent premium to Baldor’s closing price on November 29, ABB, the world’s largest builder of electricity networks, said on Tuesday.
The company, which also builds robots for industrial use, expected more than $100 million in annual cost synergies and global revenue synergies of the same amount.
Electricity giant ABB made $623 million in profit for the second-quarter of 2010, an eight per cent slip from one year ago.
swissinfo.ch and agencies