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ABB sells Baldor generator-set business to Generac

09 October, 2013

ABB is selling Baldor’s generator-set business to the US-based generator manufacturer, Generac Holdings, because of “limited synergies with ABB’s core portfolio and because Generac is in a better position to create additional value from the business”. ABB acquired the Wisconsin-based business, which accounts for about 3% of Baldor’s total sales, when it bought Baldor Electric in 2011. The terms of the transaction have not been disclosed.

The divestment is in line with our strategy to continuously optimise our portfolio and to focus our efforts on driving profitable growth in our core automation and power businesses,” says ABB CEO, Ulrich Spiesshofer. “Overall, the fit between ABB and Baldor is excellent, as we are seeing from the value that has already been created.”

Baldor CEO Ronald Tucker adds that the transaction will benefit both firms’ employees and customers. “This sale will allow Baldor to focus on industrial electric motors and mechanical power transmission products in line with ABB’s core portfolio,” he says, “while enabling the generator-set business to become part of a company solely focused on the manufacturing, distribution and sales of these types of products.”

The Baldor generator-set business produces portable, standby, prime power and peak-shaving generators in ratings from 3kW–2.5MW.

“Acquiring Baldor Generators is a great strategic fit for Generac’s business, providing us immediate access to a larger industrial product line to better support the North American and global power generation markets,” says Aaron Jagdfeld, Generac's president and CEO. “By offering additional power solutions up to 2.5MW, this acquisition improves our competitive position in the marketplace by increasing the addressable market that our distribution partners can serve.

Investing in the Baldor Generator business accelerates our organic efforts to increase our share of the commercial and industrial power generation market, while also adding significant production and test capacity for future growth,” he adds.

When the transaction closes, Baldor Generators employees will join Generac, which will be allowed to use the Baldor name for a transitionary period. Generac will continue to support Baldor Generator’s customers and distribution network. The acquisition is expected to close in the fourth quarter of 2013.

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