ABB to expand automation offering with Rotork acquisition

The transaction is expected to further strengthen ABB’s focus on electrification and automation and expand its Automation business area’s offering for large and complex infrastructure and industries.

Rotork’s business with well-established positions in mission-critical flow control and instrumentation is highly complementary to ABB’s existing automation portfolio and will strengthen ABB’s position at the field-device layer. ABB would benefit from an expanded automation offering, enhancing the “sense-control-act” automation loop with intelligent field devices and software that continuously monitors and manages industrial processes for safer, more productive, and sustainable operations. The mix of ABB’s Automation business would be improved through increased exposure to higher-margin products, services, and lifecycle revenues.

Through this proposed combination, Rotork would be able to benefit from ABB’s global scale, market reach, service presence, and digital and technology capabilities. This will facilitate accelerated growth in core and target segments with a further opportunity to expand the installed-base service model bringing additional lifecycle opportunities. The combination will allow Rotork to accelerate the development of intelligent device diagnostics and asset management solutions with ABB’s digital platforms. Additionally, Rotork would be able to leverage ABB’s trusted customer relationships and earlier project engagement to support participation in larger and more strategic projects, thereby accelerating penetration of new customers, applications, and geographies.

Upon closing Rotork is expected to operate as a separate division under a strategic growth mandate within ABB’s Automation business area. This approach is in line with the ABB Way decentralised operating model that emphasises accountability, transparency, and speed in decision-making and execution, built on the principle that operating decisions are best made within the divisions and close to customers.

The UK is an important market for ABB, with over 1700 employees. ABB recognizes Rotork’s role as a UK engineering employer and contributor to the UK’s industrial base. Its intention is to support continuity of leadership and to work closely with Rotork’s management team following completion, enabling a seamless integration. ABB has no current plans to significantly change Rotork’s presence in the UK which is expected to remain an important manufacturing and technology base for Rotork.

www.abb.com