To celebrate the closing this month of the acquisition of GE Industrial Solutions, ABB boss Ulrich Spiesshofer rang the closing bell at the New York Stock Exchange on Friday.
He was joined for the ceremony at the NYSE by Greg Scheu, president of ABB’s Americas, Tarak Mehta, president of ABB’s Electrification Products division, and Stephanie Mains, managing director of Electrification Products Industrial Solutions.
ABB said the $2.6 bn acquisition “offers substantial value creation potential within ABB, including growth opportunities to be leveraged from coupling ABB’s digital offering, ABB Ability, with the extensive GEIS installed base”.
“We are very pleased to welcome GE Industrial Solutions to ABB,” said Spiesshofer. “The combination reinforces ABB’s position as a worldwide leader in electrification and accelerates our growth and competitiveness in key markets, particularly North America. As one of Thomas Edison’s original businesses, GEIS is the cradle of electrification – a legacy that we will preserve and build on, now that GEIS is part of ABB.”
GEIS will be integrated into ABB’s Electrification Products division, led by Mehta, as a new business unit called Electrification Products Industrial Solutions, managed by Mains, who was previously the president of the GE Industrial Solutions business.
As part of the transaction, ABB has established a long-term strategic supply relationship with GE to supply it with products and solutions from across the ABB portfolio. Included in the acquisition is a long-term right to use the GE brand.
“The product portfolios of GE Industrial Solutions and ABB are highly complementary. Together we will have a comprehensive combined portfolio, as well as an expanded global footprint, sales force and distribution network,” said Mehta.
“We are committed to servicing the GEIS installed base and will now be able to provide a more technologically advanced and digitally connected offering to our customers around the world. Together we will strengthen ABB’s number two position in electrification globally and expand our access to the attractive North American market.”