Swiss engineering group ABB said Thursday it has agreed to buy UK rival Rotork in a deal worth $5.5 billion in a move to bolster its automation division.
Zurich-based ABB also announced a strong rise in second-quarter earnings on the back of “record-high orders” for all of its products.
In the period from April to June, ABB booked a seven-percent rise in net profit to $1.2 billion, a 14-percent increase in sales to $9.5 billion and a 30-percent jump in orders to $12 billion.
The group said it had agreed to pay 503 pence per share in cash for Bath-based Rotork, one of the world’s biggest manufacturers of safety devices that open and close valves in pipelines.
Under the terms of the offer — representing a total cash deal of around $5.5 billion -– Rotork shareholders will also be entitled to receive an interim dividend for the period to June 30, 2026 of up to three pence per Rotork share.
Rotork is expected to add three percent to ABB’s revenues, the Swiss giant said.
The transaction is expected to close in the first half of 2027 and is subject to a shareholder vote and customary regulatory approvals.
ABB is one of Europe’s largest industrial engineering and technology groups, employing more than 100,000 people.