25 Oct 2022

ABB to Acquire Siemens Low Voltage Nema Motor Business

ABB has announced that it has signed an agreement to purchase Siemens’ low-voltage NEMA motor business. With manufacturing operations in Guadalajara, Mexico, this acquisition provides a well-regarded product portfolio, a longstanding North American customer base, and an experienced operations, sales, and management team.

The business employs around 600 people and generated revenues of approximately $63 million in 2021. Financial terms of the transaction were not disclosed. The transaction is expected to close in the second quarter of 2023.

This transaction is part of the Motion business area’s growth strategy, and will allow the NEMA motors division to enhance its product offering, expand its supply chain relationships, and improve support to its North American customer base. It also offers the opportunity to better support customers in Mexico with local manufacturing and sales. ABB expects to benefit from identified synergies, and to use the R&D expertise, supply chain relationships, and market access to bring the combined portfolio to its full potential.

“We have long appreciated the quality and design of these motors,” said Jesse Henson, President of ABB’s NEMA motors division. “Now that we have met the leadership team behind them, I am even more confident that together we can grow our combined businesses faster than either of us could alone. We look forward to adding the Siemens low voltage NEMA motor portfolio to our existing ABB and BaldorReliance industrial electric motors offering.”

The global NEMA motor industry, roughly $2.7 billion in size, comprises industrial electric motors primarily used within North America. NEMA motors are essential components used to run equipment in industries such as food and beverage, oil and gas, mining & aggregate, and water & wastewater and in applications like those which move air, liquids, and units.

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