ABB recently announced the completion of its acquisition of the low voltage NEMA motor business from Siemens. The company first announced its plans to acquire the motor business in August 2022, citing the growth potential it will provide ABB's existing Motion business.
Through this acquisition, ABB will be able to strengthen both its position as a provider of industrial NEMA motors and its product offering for global customers.
The company plans to rebrand the acquired line of horizontal and vertical induction motors as ABB which it will reintroduce into the market in the second quarter of 2023.
Acquisition Brings Expanded Capacity to Meet Market Needs
According to ABB, the global NEMA motor industry is roughly a $2.7 billion market. The acquisition of Siemens' NEMA motors will help ABB to remain a key player in this sector.
In addition to the product line, the acquisition brings with it an existing manufacturing operation in Guadalajara, Mexico, longstanding customer base in North America and an experienced team of sales, management and operations professionals.
Additional benefits of the acquisition cited by the company include:
- combined R&D expertise
- expanded supply chain relationships
- improved support for North American customer base
- more support for customers in Mexico with local manufacturing and sales
The NEMA motor business employs close to 600 people and in 2021 generated revenues of about $63 million. ABB foresees this newly acquired business being an important part of the profitable growth strategy it has set out for its Motion business, of which these products will be a part. It anticipates the acquisition will be margin accretive to this business unit within 24 months.
READ MORE on the original acquisition announcement from EnergyTech, an Endeavor Business Media partner site.
