ABB to acquire Thomas & Betts

Power and automation technology group ABB and North American low voltage product manufacturer, Thomas & Betts have agreed to a transaction in which ABB will acquire Thomas & Betts for approximately USD3.9billion or USD72 per share in cash. The price of acquisition is based on a 24% premium to Thomas & Betts’ 27 January 2012 closing stock price and a 35% premium to the past 60 days’ volume weighted average stock price. Besides depending on standard regulatory approvals, the transaction is also subject to approval by Thomas & Betts shareholders.
Combining Thomas & Betts electrical components and ABB’s low-voltage protection, measurement and control products will increase the range of low voltage products available to supply to Thomas & Bett’s network of over 6,000 North American wholesalers and distributors and ABB’s Asian and European distribution channels. The enhanced distribution network and product portfolio will enable the company to increase its North American market to an estimated USD24 billion, furthering ABB’s strategy to expand their presence in the key market.
Thomas & Betts employs approximately 9,400 people and is estimated to report 2011 revenues of approximately $2.3 billion and earnings before interest, taxes, depreciation and amortization of approximately $390 million. The combined venture will become a new global business unit, led out of Memphis, Tennessee. The transaction is expected to close by the middle of the year.
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