ABB has announced that it has
signed an agreement to purchase Siemens’
low-voltage NEMA motor business. With
manufacturing operations in Guadalajara,
Mexico, this acquisition provides a well-regarded product portfolio, a longstanding
North American customer base, and
an experienced operations, sales, and
management team.
The business employs around 600
people and generated revenues of
approximately $63 million in 2021. Financial
terms of the transaction were not disclosed.
The transaction is expected to close in the
second quarter of 2023.
This transaction is part of the Motion
business area’s growth strategy, and
will allow the 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 customers in Mexico with local
manufacturing and sales. ABB expects
to benefit from identified synergies, and
to use the R&D expertise, supply chain
relationships, and market access to bring
the combined portfolio to its full potential.
“We have long appreciated the quality
and design of these motors,” said Jesse
Henson, President of ABB’s NEMA motors
division. “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 ABB and BaldorReliance industrial electric motors offering.”
The global NEMA motor industry, roughly
$2.7 billion in size, comprises 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.