ABB plans to purchase Siemens’ low voltage NEMA motor business. With manufacturing operations in Guadalajara, Mexico, the business unit employs around 600 people and has revenues of about $63 million. No price has been released for the deal, expected to close in the second quarter of 2023.
“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 Siemens line of NEMA low-voltage motors is extensive with numerous sizes and configurations for various applications, utilizing a variety of magnetic designs and topologies. 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 & aggregate, and water & wastewater and in applications like those which move air, liquids, and units. For more info, see www.abb.com.