PRESS RELEASE
August 11, 2022 -- ABB announced has signed an agreement to purchase Siemens’ low voltage NEMA motor business. ABB sources say ABB will see benefits from what is a respected product offering, North American customer base and able and active sales, operations and management organization. NEMA motors are manufactured in Guadalajara, Mexico. The business employs approximately 600 people and 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's profitable growth strategy, and it will allow the NEMA motors division to enhance its
“This bolt-on acquisition creates strong value for ABB’s NEMA motors division,” said Tarak Mehta, president of 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, water and wastewater and in applications that move air, liquids, and units. abb.com/us