By Anthony Capkun
October 8, 2013 – ABB is selling all assets of Baldor’s generator set business to Generac Holdings Inc., a Wisconsin-based producer of generators and other engine-powered products. The sale is expected to close later this year; terms of the transaction were not disclosed.
ABB says it is divesting the genset business because of limited synergies with ABB’s core portfolio, and because Generac is in a better position to create additional value from the business. The business was acquired as part of ABB’s acquisition of Baldor Electric in 2011, and accounts for about 3% of Baldor’s total sales. Baldor’s genset business produces a line of portable, standby, prime power and peak-shaving generators from 3kW to 2500kW in LP, natural gas or diesel.
“The divestment is in line with our strategy to continuously optimize our portfolio and to focus our efforts on driving profitable growth in our core automation and power businesses,” said ABB CEO, Ulrich Spiesshofer. “Overall, the fit between ABB and Baldor is excellent, as we are seeing from the value that has already been created.”
Baldor CEO, Ronald Tucker, added the transaction would benefit both firms’ employees and customers. “This sale will allow Baldor to focus on industrial electric motors and mechanical power transmission products in line with ABB’s core portfolio, while enabling the generator-set business to become part of a company solely focused on the manufacturing, distribution and sales of these types of products.”