ABB is selling Baldor’s generator-set business to US-based generator manufacturer, Generac Holdings, because it does not fit with ABB’s core portfolio.
The generator-set portion of Baldor business makes up 3% of Baldor’s total sales. It produces portable, standby, prime power and peak-shaving generators in ratings from 3kW–2.5MW.
ABB bought Baldor Electric in 2011. It has now decided to sell the Wisconsin-based generator business as part of a strategy to focus on growth in the automation and power businesses.
Baldor CEO Ronald Tucker said that the transaction will benefit both firms’ employees and customers: “This sale will allow Baldor to focus on industrial electric motors and mechanical power transmission products in line with ABB’s core portfolio,” he says, “while enabling the generator-set business to become part of a company solely focused on the manufacturing, distribution and sales of these types of products.”
The terms of the transaction have not been disclosed, but the acquisition is expected to complete by the end of 2013.
