The press release said the transaction will allow ABB’s NEMA motors division to enhance its product offering, expand its supply chain relationships, and improve support to its North American customer base. It also offers the opportunity to better support the customers in Mexico with local manufacturing and sales.
“This bolt-on acquisition creates strong value for ABB’s NEMA motors division,” said Tarak Mehta, president ABB Motion, in the press release. “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,” Jesse Henson, president of ABB’s NEMA motors division, added in the release. “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 said the global NEMA motor industry is roughly $2.7 billion in size and includes 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.
