ABB Sells Baldor's Generator Business to Generac Holdings
By John Revill
ZURICH--ABB Ltd (ABBN.VX) said Tuesday it would sell a U.S. generator-set business, marking the first major action taken by new chief executive Ulrich Spiesshofer.
The Zurich-based maker of power and automation technology said it would sell a generator-set business owned by Baldor, a subsidiary based in Oshkosh, Wis., to Generac Holdings Inc. (GNRC). Generac makes generators and other engine-powered products.
Terms of the deal, which is expected to close by the end of the fourth quarter, weren't released.
The deal, the first since Mr. Spiesshoffer took over last month, marks a break from U.S.-focused mergers-and- acquisition strategy charted by his predecessor Joe Hogan. Mr. Hogan resigned unexpectedly in May citing personal reasons.
ABB said it was selling the business because of limited synergies with the company's core portfolio.
"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," Mr. Spiesshofer said in a statement.
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