Under the terms of the agreement, ABB will commence a tender offer to purchase all of Baldor’s outstanding shares for $63.50 per share in cash.
The deal is expected to close in the first quarter of 2011.
Industrial motors specialist Baldor employs approximately 7,000 people and reported an operating profit of $184m on revenue of $1.29bn in the first nine months of 2010. This is said to represent an increase of 30 per cent in operating profit and 11 per cent in revenue over the comparable period in 2009.
According to ABB, the US market for high-efficiency motors is expected to grow 10 to 15 per cent in 2011 on the back of new regulations, effective in December this year. Similar regulations in Canada, Mexico and in the European Union are expected in 2011.
Glasgow trial explores AR cues for autonomous road safety
They've ploughed into a few vulnerable road users in the past. Making that less likely will make it spectacularly easy to stop the traffic for...