ABB completed its acquisition of Baldor Electric at the end of January. The transaction, announced in November last year, was valued at $4.2bn, including $1.1bn of net debt. Commenting on the closure of the deal, ABB CEO, Joe Hogan said that it “marks a significant step forward in ABB’s strategy to become the global leader in the industrial motion market”.

“From this point forward we will be working to unleash the full potential of this strategic combination,” added Ulrich Spiesshofer (above), ABB Executive Committee member responsible for the discrete automation and motion division, of which Baldor is now a part. “Together we have an excellent opportunity to serve our customers even better and to build a stronger business than it would be possible to do as separate companies.”

The acquisition advances ABB’s aim of becoming a leader in the North American industrial motors business and a global leader for movement and control in industrial applications. The combination provides a stronger platform from which it can increase its penetration of North American markets. The addition of Baldor’s North American workforce of around 6,800 brings the number of ABB employees in North America to about 17,000.

ABB expects to benefit from a predicted 10–15% growth in the US market for high-efficiency industrial motors during 2011 as a result of new energy regulations that were implemented in December 2010.

Ron Tucker, Baldor’s President and CEO (above), will be responsible for running Baldor, including its mechanical power transmission products business, as well as ABB’s North American motor and generator business. “We are joining an absolutely top-tier organisation with the reach and resources to significantly extend the Baldor brand,” he says. “As part of ABB’s global family, Baldor has a bright future ahead.”