ABB to Acquire Rotork

Last week, ABB announced that it has agreed to terms to acquire Rotork, a manufacturer of electric actuators and automation products for the flow control industry. The Rotork portfolio is highly complementary to ABB’s existing automation portfolio, and Rotork customers will benefit from ABB’s global footprint and market reach, as well as its extensive service network.

Upon closing, Rotork is expected to operate as a separate division under a strategic growth mandate within ABB’s Automation business unit. This aligns with ABB’s decentralized operating model that emphasizes accountability, transparency and speed in decision-making and execution, built on the principle that operating decisions are best made within divisions and closer to the customer.

Morten Wierod, CEO of ABB said: “ABB has followed Rotork over many years, and we admire the execution excellence, engineering quality and customer trust that Rotork’s teams deliver each day. We are convinced of the compelling strategic fit of the transaction that will expand our automation offering at the field device layer generating significant value for customers, employees and shareholders of both companies. As part of ABB, Rotork is expected to accelerate its growth and value creation while preserving its entrepreneurial spirit and customer proximity that makes this business so successful. With our strong balance sheet ABB has room for additional M&A and execution of its announced share buyback program.”

Dorothy Thompson, Chair of Rotork added: “The Board believes that the offer from ABB reflects the high quality of Rotork and recognises the significant progress delivered through the successful implementation of our Growth+ strategy, whilst providing an attractive opportunity for Rotork shareholders to accelerate the value creation of the Company’s strong future prospects, in cash at closing. The combination brings together two companies whose purposes are closely aligned, with a shared focus on automation and electrification to enable more sustainable and efficient operations. The Board also believes that ABB’s decentralised operating model and commitment to run Rotork as a separate division will benefit the Group’s business, employees and wider stakeholders. As a result, the Board has unanimously agreed to recommend the offer to Rotork shareholders.”

The transaction is expected to close in the first half of 2027. The offer is currently valued at $5.5 billion USD.