ABB announced they have signed an agreement to sell all assets of Baldor's generator-set business to Generac Holdings Inc. (NYSE:GNRC, 'Generac') - a leading producer of generators and other engine-powered products with the headquarters in Waukesha, Wisconsin, USA. The terms of the transaction, expected to close in the fourth quarter of 2013, were not disclosed.
"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."
ABB is divesting the generator-set 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 generator-set business produces in its facility in Oshkosh, Wisconsin, has a broad line of portable, standby, prime power and peak-shaving generators from 3 2,500 kW in LP, natural gas or diesel for every power requirement.
Baldor CEO, Ronald Tucker, added: "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."