ZURICH — ABB has signed a definitive settlement to divest its Mechanical Energy Transmission division (Dodge) to RBC Bearings Included for $2.9 billion in money.
The transaction will create a number one producer of extremely engineered, performance-critical bearings and motion-control elements. The transaction is predicted to be accomplished by the tip of 2021, topic to customary closing circumstances, together with regulatory overview.
For greater than 140 years, the Dodge enterprise has been a frontrunner within the design, manufacturing, and advertising and marketing of mounted bearings, enclosed gearing, and power-transmission elements. It affords one of many broadest portfolios of mechanical power-transmission merchandise out there, promoting to industries similar to floor mining, aggregates and cement, warehousing and meals and beverage.
Dodge has roughly 1,500 staff worldwide and achieved revenues of roughly $600 million for the final twelve months ending June 30, 2021, of which greater than 90% was generated within the Americas.
The working EBITA margin was roughly 23%. It produces at six manufacturing websites – 5 within the U.S. and 1 in China – and its headquarter is in Greenville, South Carolina. The president of the division is Roger Costa.
“We’re delighted that Dodge has discovered a superb new dwelling with RBC Bearings, the place it may proceed its thrilling progress story,” stated ABB CEO Björn Rosengren. “This transaction additional strengthens ABB’s stability sheet. According to our capital allocation priorities, we plan to first use the proceeds from the transaction to fund natural progress, pay a rising sustainable dividend per share and make value-creating acquisitions. Moreover, we’ll give an replace on our plans for the Turbocharging exit and attainable itemizing of our E-Mobility division sooner or later.”