Thomas & Betts Bought By ABB for $3.9B

By Industrials FOXBusiness

Swiss engineering group ABB has agreed to buy electrical components maker Thomas & Betts (TNB) for $3.9 billion to grow its portfolio of low-voltage products and further expand its geographic scope.

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The $72-a-share deal represents a 24% premium to Thomas & Betts’ closing price on Jan. 27. 

The acquisition will enable ABB to reach Thomas & Betts’ network of more than 6,000 distributors and wholesalers in North America. It already has a heavy presence throughout Europe and Asia and expects this deal to double its addressable market in North America to about $24 billion.

“Thomas & Betts is a well-run company with strong brands and excellent distribution channels in the world’s largest low-voltage products market,” ABB chief executive Joe Hogan said in a statement. “Because our products are complementary, we’ll go to market with one of the broadest offerings in the industry.”

Memphis-based Thomas & Betts, combined with ABB’s North American low-voltage products business, will become a new global business led out of Memphis by its current CEO Dominic Pileggi. The 9,000 Thomas & Betts employees are expected to join ABB’s 130,000-person global workforce, including 18,000 employees in North America.

Thomas & Betts reported stronger-than-expected quarterly sales on Monday and a 31% increase in profit, led by its electrical, HVAC and steel structures businesses.  

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Its deal with ABB is slated to close by the middle of this year pending regulatory and shareholder approvals.

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