ABB To Acquire Thomas & Betts For $3.9 Billion
ABB and Thomas & Betts Corporation have announced that ABB will acquire Thomas & Betts for $72 per share, approximately $3.9 billion. This price is a 24% premium compared to Thomas & Betts’ closing stock price on Jan. 27, 2012. The acquisition is set to close mid-2012, once approved by the necessary channels. Here are a few key points ABB mentions in its press release:
• ABB gains access to Thomas & Betts network of more than 6,000 distributor locations and wholesalers in North America
• Transaction doubles ABB’s addressable low-voltage products market to approximately $24 billion in North America and enables distribution of Thomas & Betts products through ABB’s extensive global network
• Furthers ABB’s 2015 strategy to expand its geographic and product scope in one of its most profitable businesses
• Approximately $200 million in expected annual synergies by 2016
“Thomas & Betts is a well-run company with strong brands and excellent distribution channels in the world’s largest low-voltage products market,” said Joe Hogan, ABB’s CEO. “Because our products are complementary, we’ll go to market with one of the broadest offerings in the industry. That creates strong growth opportunities for both ABB and Thomas & Betts, and gives customers and distributors one-stop access to one of the widest ranges of low voltage products.”
Once the acquisition is complete, the companies will become a new global business unit led out of Memphis, TN, under the leadership of Pileggi, according to the report.