ABB to acquire US electrical components maker Thomas & Betts for $3.9 bn
30 Jan 2012
Swiss engineering group ABB Ltd today said that it will buy US electrical components maker Thomas & Betts for $3.9 billion in cash to expand into the North American market for low-voltage products.
The Zurich-based engineering and electrical giant will pay $72 per share in cash, a 24 per cent premium over Thomas & Betts closing price of $57.95 on 27 January.
This is ABB's second major deal under CEO Joe Hogan, after the 2010 acquisition of Arkansas-based electrical motor maker Baldor Electric Company, for $4.2 billion (See: B to acquire electrical motor maker Baldor Electric for $4.2 billion).
Memphis, Tennessee-based Thomas & Betts is a maker of electrical components and other products for industrial customers in North America, Europe and elsewhere.
Its main business is the manufacture of low-voltage and ultralow-voltage electrical products such as connectors, conduits and fittings as well as wiring management products for the construction, industrial and utilities markets.
These products are complementary to ABB's portfolio in its low voltage products division, which includes products such as breakers and switches.