ABB bids for $5.5bn British automation firm Rotork
Swiss-Swedish engineering firm ABB is looking to strengthen its automation business by launching a takeover bid for British flow control solutions specialist, Rotork.
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ABB bids for $5.5bn British automation firm Rotork
The Zurich-based group is offering Rotork shareholders 505 pence per share. The deal, which still requires the approval of the British-based company’s shareholders and the relevant authorities, values the company at nearly $5.5 billion.
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ABB’s offer represents a premium of around 60% on the average price of Rotork shares over the last three months, ABB said on Thursday.
Shareholders in the British firm, founded in 1957, are also entitled to receive an interim dividend of up to 3 pence per Rotork share for the period up to June 30, 2026 without this resulting in any reduction in the amount offered.
ABB intends to finance the transaction using its available cash, amounting to $5.8 billion as at June 30, as well as existing bank facilities.
ABB also noted that the sale of its Robotics business to Japan’s SoftBank is expected to generate net proceeds of $4.8 billion upon completion of the transaction in the second half of 2026, which will further strengthen its cash position.
Rotork’s board of directors has unanimously approved the transaction and recommends that its shareholders accept it at the next general meeting. The deal is expected to be finalised during the first half of 2027.
Rotork, which employs a total of 3,500 staff, including 1,700 in the UK, holds well-established positions in the field of flow control and measurement solutions essential to operations.
The company, which last year generated turnover of nearly $1 billion with a margin of 24.6%, is expected to contribute 3% to ABB’s revenue and immediately improve its operating margin (EBITA).
Once the transaction is finalised, Rotork will join ABB’s Automation division.
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Translated from French, reviewed by an English Department journalist.
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