The deal values Bernecker & Rainer Industrie-Elektronik GmbH at almost $2 billion, said a person familiar with the matter, who asked not to be identified as the figure hasn’t been disclosed. The deal was funded with cash, Zurich-based ABB said in a statement on Tuesday. B&R generated revenue of more than $600 million in fiscal 2016.
“Strategically, this is the most important deal ABB has ever done,” Chief Executive Officer Ulrich Spiesshofer said on a call with reporters. “In the future there will be more acquisitions by ABB -- that’s one of the drivers of growth going forward -- but there is no ‘must have’ that we are desperate about.”
The purchase of B&R sees the world’s biggest maker of power grids emulate German rival Siemens AG in expanding in higher-margin software and away from its traditional hardware business. The acquisition will give ABB greater access to a machine and automation market worth $20 billion and growing at 4 percent to 5 percent a year, Spiesshofer said on a call with analysts.
This is ABB’s first significant deal since the acquisition of solar inverter maker Power-One Inc. for $1 billion in 2013, and follows the $4.5 billion takeover of Mentor Graphics Corp. of the U.S. by Siemens late last year. The acquisition will make the Swiss company the second-biggest operator in industrial automation, behind Siemens and ahead of Emerson Electric Co., General Electric Co. and Schneider Electric SE, according to ABB estimates.
The deal has the support of Cevian Capital AB, Spiesshofer said, the Swedish activist investor that pushed last year for ABB to spin off its power grids business.
“At one point Cevian said it sounds like a really smart deal,” the CEO said.“We have strong support from our shareholders for this transaction.”
ABB shares fell 0.2 percent to 23.24 Swiss francs as of 3:05 p.m. in Zurich, valuing the company at 51.5 billion francs ($51.4 billion).
“We consider ABB’s acquisition of Austrian B&R a smart strategic move as it closes a gap in its product portfolio and also nicely fits into ABB’s Ability digital end-to-end solutions platform,” Vontobel analyst Panagiotis Spiliopoulos wrote in a note to clients.
ABB said it’s targeting mid-term sales of more than $1 billion for the business, which employs more than 3,000 people. B&R’s management team will continue to run the company, it said.
“We agreed with the seller not to disclose the price,” an ABB spokesman said, when asked about the $2 billion valuation.
Guangzhou Vicpas Touch Technology Co., Ltd. is a renowned and professional Touch Screen, Touch Panel, Keyboard membrane and Accessories manufacturer in a global spectrum.
After more than 10 years of accumulated experience and continuous improvement of quality control, at the same time a reliable strategic partner and supplier of worldwide top companies.
Vicpas's success depends on customers support, provide One-stop shop service with the win-win relationships for touch screen, touch panel, membrane keyboard and LCD Display. Since entering the global market, we have continued to set up new standards for reliable performance, exquisite design and customer service.
As a professional OEM/ODM supplier, we have modern machines and scientific management system guarantee high quality and on time delivery.Vicpas total output of Touch screen panel and Keyboard membrane Accessories reach 500,00pcs per month. Our products are mainly exported to more then 60 countries, especially European and America.
Vicpas’s concept is to provide superior ratio of price and quality products for our partners and customers to strengthen their competence in their local markets.
Vicpas Touch will be one of your best strategic business partners in Faucet industry in China.
Vicpas is focus on Wholesale, warmly welcome Automation repair Company, Electric Repair Company, Board Repair Company, Local Trading Company, Ebay Big Seller, Amazon Big Seller etc from all overlay world to discuss and work together, If meet urgent shipment, we would ship the parcel to your customers directly, shipper name basic on your request, make sure you and your customers safe and keep on ordering product from your company.
What kind of Touch Screen does VICPAS supply?
What kind of Membrane Keyboard supply by VICPAS?
How many different brand of Touch Screen Panel could VICPAS supply?
How can i install touch screen and replace membrane keyboard?
FAQ for Touch Screen Panel.
FAQ for Membrane keyboard.
Why Paypal Select VICPAS to be the Paypal Golden Key Supplier?
Tesla Motos selected Touch Screen and Membrane Keyboard from VICPAS.
Follow us on Social Media to get the latest update and promotion information!