ABB buys Rotork for $5.5 billion in record deal to expand automation

ABB Ltd. agreed to acquire British industrial components maker Rotork Plc for about $5.5 billion, the Swiss engineering group's largest-ever acquisition, as it moves to strengthen its automation business after selling its robotics division.

The deal gives each Rotork shareholder 503 pence in cash per share, a premium of roughly 60% to the company's three-month average share price, ABB said Thursday. The enterprise value of $5.5 billion exceeds ABB's previous record purchases of Baldor Electric for $4.2 billion in 2011 and Thomas & Betts for $3.9 billion in 2012.

"The strategic fit is compelling," ABB Chief Executive Officer Morten Wierod said in a statement. "Rotork's field device capabilities will expand our automation offering at the layer closest to the physical process."

Rotork makes actuators that automatically open, close and precisely control valves regulating the flow of liquids and gases across industries including oil and gas, water, power generation, chemicals and mining. The company generated about $1 billion in revenue in 2025, growing at roughly 8% annually, and operates with a profit margin of 24.6%, making it immediately accretive to ABB's own margins.

ABB is funding the all-cash deal with proceeds from the October sale of its robotics division to SoftBank Group Corp. in a transaction valued at $5.38 billion. Chairman Peter Voser told Reuters earlier this year that ABB was pursuing larger acquisitions after years of divestments and portfolio reshaping.

The acquisition came alongside ABB's second-quarter results, which showed operational earnings before interest, tax and amortization rising 20% to $1.93 billion, beating the $1.88 billion consensus compiled by the company. Revenue climbed 14% to $9.48 billion, in line with analyst forecasts, while net income rose 7% to $1.23 billion, missing expectations for $1.32 billion.

Orders jumped 30% to $12.04 billion, driven by demand for equipment powering data centers built to support artificial intelligence workloads. ABB shares were indicated about 3% higher in premarket trading in Zurich.

"Our second-quarter results reflect high demand in the majority of our customer segments," Wierod said.

The Rotork deal is subject to regulatory approvals and customary closing conditions. ABB did not provide an expected closing date.

This article is for informational purposes only and does not constitute investment advice.