ABB buys GE business for $2.6 billion in bet it can boost margins | ReutersPower grids maker ABB is buying General Electric’s Industrial Solutions business for $2.6 billion in a bet it can improve the division’s lackluster margins over the next five years, the Swiss engineering company said on Monday.
Zurich-based ABB sees potential for annual cost benefits of $200 million with the deal, which includes an agreement for long-term use of GE’s brand and a strategic partnership. In 2016, the GE business had sales of $2.7 billion.
The GE products include circuit breakers, switchgear, components for lighting control and power supply equipment for facilities including data centers. ABB’s portfolio includes similar products.
ABB is seeking to better penetrate the North American market and gain access to GE’s larger installed base of electrical installations worldwide.
