The transaction, which was originally announced on November 30, 2010, was valued at $4.22 billion, including $1.1 billion of net debt.
The acquisition of Baldor advances ABB’s strategy to become a leader in the North American industrial motors business and a global leader for movement and control in industrial applications.
The addition of Baldor’s around 6,800 North American employees brings the number of ABB’s employees in North America to approximately 17,000.
Baldor’s range of high-efficiency industrial electric motors will allow ABB to benefit from a projected 10-15 per cent growth in this business in the US in 2011 as a result of new energy regulations that were implemented in December 2010. Similar regulations mandating higher electric motor efficiency are being implemented in other countries beginning this year.