Acquisition will broaden and complement ABB’s power products offering
Zurich, Switzerland, July 16, 2008 - ABB, the global power and automation technology group, has signed an agreement to acquire U.S. transformer company Kuhlman Electric Corporation for an undisclosed amount from global private equity firm The Carlyle Group to expand its power products portfolio in the Americas. Kuhlman Electric manufactures a wide range of high-quality transformers for the industrial and electric utility sectors.
Kuhlman Electric has demonstrated a track record of profitable growth with double-digit annual sales growth over the past five years. In 2007, the company had revenues of around $250 million. The business is well positioned to benefit from the investments required to modernize and expand the U.S. utility infrastructure and to increase industrial efficiency and reliability.
Kuhlman Electric has a strong reputation for innovative products and solid, long-term customer relationships. The company is headquartered in Versailles, Kentucky and employs approximately 800 people.
Michel Demaré, ABB's Chief Executive Officer and Chief Financial Officer stated: "This transaction is the first milestone of our acquisition strategy, which is focused on finding bolt-on acquisitions that selectively complement both our product range and geographical presence. The addition of Kuhlman Electric's business into our power products portfolio will allow us to further capture opportunities for profitable growth. At the same time, our customers will benefit from our broader offering."
ABB plans to integrate Kuhlman Electric's operations into its Power Products business in North America.
Bernhard Jucker, head of ABB's Power Products division, said: "Kuhlman Electric's high-quality products and experience complement ABB's offering in North America, and the company will benefit from ABB's long-established global infrastructure and our network of professionals within the power industry."
Glenn A. Youngkin, managing director of The Carlyle Group, said: "Kuhlman Electric has been an excellent long-term investment for Carlyle. ABB is well positioned to further develop Kuhlman Electric's activities and operations and take the company to the next level of excellence."
The acquisition is subject to customary regulatory approvals. ABB expects the transaction to close in a few months.
The Carlyle Group is a global private equity firm with $82.7 billion of assets under management committed to 60 funds as of March 31, 2008. Carlyle invests in buyouts, venture & growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology & business services and telecommunications & media. www.carlyle.com
ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs more than 110,000 people.