In a move that significantly bolsters its standing in the low-voltage products market, ABB will acquire Thomas & Betts for approximately $3.9 billion.
The transaction is subject to approval by Thomas & Betts shareholders, as well as to customary regulatory approvals, and is expected to close by the middle of 2012, ABB says.
ABB says the combination of Thomas & Betts' electrical components and ABB's low-voltage protection, control and measurement products would create a broader low-voltage portfolio that can be distributed through Thomas & Betts' network of locations and wholesalers in North America and through ABB's distribution channels in Europe and Asia.
Further, ABB expects the transaction to deliver approximately $200 million in annual synergies by 2016. The majority of cost synergies are expected to come from sourcing and purchasing efficiencies, the company says.
Once the transaction closes, Thomas & Betts will be combined with ABB's North American low-voltage products business, located in Memphis, Tenn. Dominic J. Pillegi, Thomas & Betts' chairman and CEO, will lead the new business unit.