The acquisition advances ABB's strategy of expanding its Low-Voltage Products division into new geographies,
sectors and products. In North America, the combination will double ABB's addressable market to approximately $24 billion. Thomas & Betts' has a North-American network of more than 6000 distributor locations and wholesalers, which will provide greater access for ABB's low-voltage products. In Europe and Asia, distribution capabilities and coverage will be expanded through ABB's well-established channels.
"The acquisition of Thomas & Betts furthers our global strategy and provides substantial opportunities to create value for our shareholders," said Joe Hogan, ABB's CEO. "ABB firmly believes in the strength of American manufacturing. Within the past three years, we have invested over $11 billion in North America to become a leading player for power and automation technologies in the region, and today the U.S. is ABB's largest market in terms of sales and employees."
Tarak Mehta, head of ABB's Low- Voltage Products division, added,. "Our joint low-voltage electrical components business is globally balanced and has one of the broadest scopes in the industry."
Dominic Pileggi will remain as chairman of Thomas & Betts, and Charles Treadway, previously chief operating officer, will take over from him as CEO. The headquarters of the company are in Memphis, Tenn.
"We are proud to join ABB and bring our skills, products and long-standing customer relationships into ABB's portfolio", said Treadway. "With our expanded product offering and global market presence, our combined companies have significant opportunities for growth."
In connection with the completion of the transaction, Thomas & Betts shares have ceased trading on the New York Stock Exchange.