ABB to acquire US transformer company
21 July 2008
ABB hopes to expand it power products portfolio in the Americas with the acquisition of a US transformer company. Kuhlman Electric Corporation will be bought, for an undisclosed amount from The Carlyle Group.
The Versailles, Kentucky company had revenues of around $250 million (€158 million) in 2007 and employs approximately 800 people.
Michel Demaré, chief executive officer and chief financial officer of ABB, said: ‘This transaction is the first milestone of our acquisition strategy, which is focused on finding bolt-on acquisition that selectively complement both our product range and geographical presence. The addition of Kuhlman Electric’s business into our power products portfolio will allow us to further capture opportunities for profitable growth.’
ABB plans to integrate Kuhlman Electric’s operations into its Power Products business in North America.
Bernhard Jucker, head of ABB’s power products division, said: ‘Kuhlman Electric’s high quality products and experience complement ABB’s offering in North America, and the company will benefit from ABB’s long-established global infrastructure and our network of professionals within the power industry.’
Glenn A. Youngkin, managing director of The Carlyle Group, added: ‘Kuhlman Electric has been an excellent long-term investment for Carlyle. ABB is well positioned to further develop Kuhlman Electric’s activities and operations and take the company to the next level of excellence.’
The acquisition is subject to customary regulatory approvals. ABB expects the transaction to close in a few months.
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