ABB acquires GE Industrial Solutions for $2.6bn

Global power and autorotation company, ABB, has announced the acquisition of GE’s global electrification solutions business in a deal designed to expand its access to the North America market.

ABB acquires GE Industrial Solutions for $2.6bn - ABB’s EP division delivers more than 1.5 million products to customers around the world every day through a global network of channel partners and end-customers - image courtesy of ABB.
ABB’s EP division delivers more than 1.5 million products to customers around the world every day through a global network of channel partners and end-customers – image courtesy of ABB.

Headquartered in Atlanta, Georgia, GE Industrial Solutions has around 13,500 employees globally and has strong customer relationships in more than 100 countries.

ABB expects to achieve some $200m of annual cost synergies within five years, and strengthen its number two position in the global electrification market.

GE Industrial Solutions will reportedly be integrated into ABB’s Electrification Products (EP) division, resulting in a “strong global portfolio” and a comprehensive offering for North American and global customers combining ABB’s technologies and ABB AbilityTM digital offering coupled with GE complementary industrial solutions and market access.

Included in the acquisition is a long-term right to use the GE brand. ABB is expected to retain the GE Industrial Solutions management team and build upon its experienced sales force.

ABB’s EP division delivers more than 1.5 million products to customers around the world every day through a global network of channel partners and end-customers. Given this transaction, which is expected to close in the first half of 2018, ABB has decided to put the previously announced share buyback program on hold.

ABB’s recent expansion

In April 2017, ABB announced the acquisition of B&R, one of the world’s largest privately-owned industrial automation businesses for an undisclosed sum.

Alongside hardware, ABB expects the pairing to result in significant digital growth opportunities resulting from the Fourth Industrial Revolution. The move represented a “major step” for the company in expanding its digital offering by merging its portfolio of digital solutions, ABB Ability, with B&R’s strong application and software platforms, its large installed base, customer access and tailored automation solutions.

Also that month, ABB announced a strategic collaboration with IBM to drive adoption of the industrial artificial intelligence (AI).

The deal seeks to leverage ABB’s understanding and portfolio of digital offerings, combined with IBM’s knowledge of artificial intelligence (AI) and machine to being real-time intelligent insights to factory floors.

The UK’s biggest digital manufacturing show!

Liverpool and the North West’s advanced manufacturing is in the spotlight as the region plays host to 4,000 manufacturers from across the country at The Manufacturer Smart Factory Expo.

The UK’s largest standalone Fourth Industrial Revolution (4IR) expo coincides with the government’s much anticipated Industrial Strategy, and features:

  • Dedicated Exhibition Zones – Industrial Automation, Digital Transformation, Smart Factories, Industrial Internet
  • Free conference content – Close to 100 presentations from world-class manufacturers and technology experts over two days
  • Innovation Alley – lifting the lid on the UK’s manufacturing tech start-up scene
  • Hack & Pitch – real engineers, tackling real problems, in real time!