ABB Ltd. (NYSE: ABB) on May 16 said it has completed the acquisition of Memphis, Tenn.-based Thomas & Betts Corp.
Financial terms of the deal were not disclosed.
The acquisition advances ABB’s strategy of expanding its low voltage products division into new geographies, sectors and products, the company said in a statement.
The complementary combination of Thomas & Betts’ electrical components and ABB’s low voltage protection, control and measurement products will create a broader low voltage offering. In North America, the combination will double ABB’s addressable market to about $24 billion, ABB said.
Thomas & Betts’ has a North-American network of more than 6,000 distributor locations and wholesalers which will provide greater access for ABB low voltage products. In Europe and Asia, distribution capabilities and coverage will be expanded through ABB’s well established channels.
Dominic Pileggi will remain as chairman of Thomas & Betts and Charles Treadway, former COO, will take over from him as CEO.
“The acquisition of Thomas & Betts furthers our global strategy and provides substantial opportunities to create value for our shareholders” ABB CEO Joe Hogan stated. “ABB firmly believes in the strength of American manufacturing. Within the past three years, we have invested over $11 billion in North America to become a leading player for power and automation technologies in the region and today the US is ABB’s largest market in terms of sales and employees”.
In connection with the completion of the transaction, Thomas & Betts shares have ceased trading on the NYSE.
Bank of America Merrill Lynch acted as financial advisor to ABB, while Kirkland & Ellis LLP served as main legal advisor. Deutsche Bank Securities Inc. acted as a financial advisor to Thomas & Betts and Davis Polk & Wardwell LLP was legal advisor.