ABB expects double-digit earnings growth
AFP/The Local · 26 Jan 2011, 10:35
Published: 26 Jan 2011 10:35 GMT+01:00
- US authorities clear ABB's Baldor takeover (21 Jan 11)
- ABB agrees to buy US Baldor Group (30 Nov 10)
- ABB posts drop in profits (28 Oct 10)
ABB said that following the Tuesday closing of the offer, it had received 89.4 percent of Baldor's shares. It would acquire the remaining shares at $63.50 per share, a premium of 41 percent over the US group's stock price on November 29th, 2010, and de-list the company from Wall Street, it added.
US competition authorities green-lighted the takeover last week and the management of both groups have approved the transaction. Arkansas-based Baldor employs about 7,000 people and reported an operating profit of $184 million in the first nine months of 2010.
ABB plans to integrate Baldor into its motors and generators business, a move which it has said would bring about savings of $200 million annually by 2015.
ABB, which will announces its earnings results on February 17th, said it expected double-digit growth in its fourth-quarter operating income, as well as double-digit growth in orders in local currency terms.
Baldor Electric was founded in 1920 by Edwin Ballman and Emil Doerr. The name of the company was derived using part of each of their names.
In 1967, the company's headquarters were moved from St. Louis, Missouri to Fort Smith, Arkansas. On January 31st, 2007, Baldor Electric acquired the Dodge and Reliance Electric brands from Rockwell Automation for $1.8 billion.
ABB is one of the largest engineering companies and conglomerates in the world. It has operations in around 100 countries with about 117,000 employees and reported global revenue of $31.8 billion for 2009.