ABB to acquire Siemens low voltage NEMA motor business

Aug. 11, 2022
Deal includes manufacturing operations in Mexico and 600 employees.
Abb Logo

(Zurich, Switzerland — Aug. 8, 2022 — ABB Release) — ABB announced it has signed an agreement to purchase Siemens’ low voltage NEMA motor business. With manufacturing operations in Guadalajara, Mexico, this 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 ABB Motion business area’s profitable growth strategy, and it 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 the 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.

“This bolt-on acquisition creates strong value for ABB’s NEMA motors division,” said Tarak Mehta, president ABB Motion. “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. “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.”

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 and aggregate, and water and wastewater.

Sponsored Recommendations

Choosing The Right Partner for CHIPS Act Investments

As the U.S. looks to invest in the semiconductor research and production using CHIPS Act 2022 funding, it's important to choose the right partner.

EMWD Uses Technology to Meet Sustainability Goals

Eastern Municipal Water District pilots artificial intelligence-enabled control and machine learning to help save energy, reduce costs, and improve quality.

Protein Processing Solutions: Automation & Control

For protein processors looking to address industry challenges, improve efficiency, and stay ahead in a competitive market, Rockwell Automation offers tailored automation, control...

Automotive Manufacturing Innovation: Smart Solutions for a Connected Future

Rockwell Automation provides automation and control systems tailored for the automotive and tire industries, supporting electric vehicle production, tire production, battery production...

Request More Information

By clicking above, I acknowledge and agree to Endeavor Business Media’s Terms of Service and to Endeavor Business Media's use of my contact information to communicate with me about offerings by Endeavor, its brands, affiliates and/or third-party partners, consistent with Endeavor's Privacy Policy. In addition, I understand that my personal information will be shared with any sponsor(s) of the resource, so they can contact me directly about their products or services. Please refer to the privacy policies of such sponsor(s) for more details on how your information will be used by them. You may unsubscribe at any time.