ABB Buys Thomas & Betts To Strengthen U.S. Low Voltage Position
30 Enero 2012 - 1:02AM
Noticias Dow Jones
Power and technology group ABB Ltd (ABBN.VX) Monday said it had
paid $3.9 billion for Thomas & Betts Corp, to increase the
Swiss company's exposure to the U.S. low voltage market.
Chief Executive Joe Hogan said the acquisition gives ABB "a
great position in a growing U.S. economy and balances our portfolio
better across the three geographic regions, Asia, Europe and the
Americas too."
For ABB, low voltage products like connectors, conduits and
fittings "has primarily been a European and Chinese business with
relatively little to no U.S. position," Hogan told a company
video.
"We are very strong in Europe, Middle East and Far East and
Thomas& Betts is really strong in the U.S. so really together
we make each other stronger," Hogan added.
Thomas & Betts, which is based in Memphis, Tennessee, was
also attractive because of its distribution channels in the
U.S.
The company has a network of 6,000 distributors across the U.S.
which will allow ABB to double its addressable market to
approximately $24 billion.
"In the U.S. low voltage business it wasn't always the best
products that won orders, but distribution channels were the most
important," Hogan said.
ABB would sell its products through Thomas & Betts
distributors. It also wants to sell Thomas & Betts products
through its network in Asia and Europe.
Around 30% of Thomas & Betts sales were in the construction
market, with most of it in the commercial property sector which had
weathered the U.S. downturn better than residential, Hogan
added.
In November, ABB said it was targeting sales growth of 7% to 10%
each year over the next five years, a figure which could be
increased by 3% to 4% by merger and acquisition activity.
-By John Revill, Dow Jones Newswires; +41 43 443 8042 ;
john.revill@dowjones.com
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