ABB completes acquisition of Siemens low-voltage motor business

ABB announced earlier this month that it has completed its acquisition of the Siemens low-voltage NEMA motor business. The transaction was originally announced on 11 August 2022, and financial terms of the transaction were not disclosed. The business employs around 600 people and generated revenues of approximately US$63 million in 2021.

The acquisition of this business is part of ABB’s Motion business area’s profitable growth strategy. The company said it strengthens ABB’s position as a leading industrial NEMA motor manufacturer, and it provides a stronger platform from which ABB can better serve its global customers.

The line of horizontal and vertical induction severe duty and general purpose motors will be re-branded as ABB and reintroduced to the market during the second quarter of 2023.

The global NEMA motor industry, roughly US$2.7 billion in size, comprises industrial electric motors primarily used within North America. NEMA motors are essential components used to run equipment in industries such as food and beverage, oil and gas, mining and aggregate, and water and wastewater.

“This bolt-on acquisition creates strong value for ABB’s NEMA motors division,” said Tarak Mehta, President ABB Motion in the August announcement. “Investing in the business and opening up sales opportunities in North America and especially Mexico will allow this business to be margin accretive to the ABB Motion business within 24 months.”

The Siemens low-voltage NEMA motor range will add to ABB’s existing offering of ABB and Baldor-Reliance electric motors.