ABB Beats on Revenue and Buys Rotork for $5.5 Billion in All-Cash Deal
ABB posted Q2 revenue of $9.47 billion, coming in $30 million above consensus, while operating profit also cleared analyst expectations. GAAP earnings per share of $0.68 missed the consensus estimate by $0.06. Separately, ABB agreed to acquire British flow-control equipment maker Rotork for $5.5 billion (£4.1 billion) in an all-cash transaction at 506 pence per share, a deal the Rotork board has already recommended shareholders accept.
ABB is one of the largest industrial automation companies in the world, so a $5.5 billion acquisition signals where capital is flowing in the electrification and process-automation space. Rotork shareholders stand to collect a defined cash price at 506 pence, removing price risk. For ABB shareholders, the deal adds leverage to energy and water infrastructure spending but also takes $5.5 billion off the balance sheet, which compresses near-term financial flexibility.
ABB Q3 guidance call (date to be confirmed, typically late October). Rotork shareholder vote on the acquisition (timeline not yet disclosed). Next ABB full-year outlook update alongside Q3 results.
- ABB Q2 operating profit beats forecasts, to buy Rotork for $5.5 billion · Investing.com
- Electrotechnology: ABB to acquire British Rotork for $5.5 billion · Handelsblatt
- Business Figures: Syngenta postpones IPO · Handelsblatt
- ABB GAAP EPS of $0.68 misses by $0.06, revenue of $9.47B beats by $30M; gives Q3 and updates FY outlook · Seeking Alpha
- Engineering group picked off London Stock Exchange in £4.1bn deal · City AM
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