ABB to Buy Rotork in $5.5B Automation Deal
ABB has agreed to acquire UK-based intelligent flow control solutions provider Rotork in a recommended all-cash deal valuing the company at about $5.5 billion, expanding its automation portfolio and strengthening its position in industrial automation.
ABB said Rotork's flow control and instrumentation portfolio complements its existing automation business and will strengthen its position at the field-device layer by adding intelligent field devices and software used to monitor and manage industrial processes.
Rotork will operate as a separate division within ABB's Automation business following completion of the transaction.
Under the terms of the offer, Rotork shareholders will receive 503 pence in cash per share, representing a premium of about 60% to the company's three-month average share price. Shareholders will also be entitled to receive an interim dividend of up to 3 pence per share for the period to June 30, 2026.
Rotork generated around $1 billion in revenue in 2025 with an adjusted operating profit margin of 24.6%. ABB expects the acquisition to add about 3% to its revenues and be immediately accretive to its Operational EBITA margin.
The acquisition will be financed through existing cash resources and committed bank facilities. ABB said the planned sale of its Robotics business to SoftBank, expected to generate about $4.8 billion in net cash proceeds, would further strengthen its liquidity.
The transaction will be implemented through a court-sanctioned scheme of arrangement under the UK Companies Act and is expected to close in the first half of 2027, subject to Rotork shareholder approval and customary regulatory clearances.
"We are convinced of the compelling strategic fit of the transaction that will expand our automation offering at the field device layer generating significant value for customers, employees, and shareholders of both companies.
“As part of ABB, Rotork is expected to accelerate its growth and value creation while preserving its entrepreneurial spirit and customer proximity that makes this business so successful. With our strong balance sheet ABB has room for additional M&A and execution of its announced share buyback program,” said Morten Wierod, CEO of ABB.
"The combination brings together two companies whose purposes are closely aligned, with a shared focus on automation and electrification to enable more sustainable and efficient operations.
“The Board also believes that ABB's decentralized operating model and commitment to run Rotork as a separate division will benefit the Group's business, employees and wider stakeholders. As a result, the Board has unanimously agreed to recommend the offer to Rotork shareholders,” added Dorothy Thompson, Chair of Rotork.
