ABB completes its acquisition of GE Industrial Solutions (GEIS), GE’s global electrification solutions business on June 30, 2018. The transaction was announced on September 25, 2017 and is expected to be accretive to operational EPS in the first year.
The $2.6 billion transaction includes potential growth opportunities from coupling ABB’s digital offering, ABB Ability, with the extensive GEIS installed base, according to the company. ABB says it expects to realize approximately $200 million of annual cost synergies in year five, which will be key in bringing GEIS to peer performance.
GEIS will be integrated into ABB’s Electrification Products (EP) division, led by EP President Tarak Mehta, as a new business unit called Electrification Products Industrial Solutions (EPIS). Stephanie Mains, who was previously the president and CEO of the GE Industrial Solutions business, will lead the new business unit as managing director. As part of the transaction, ABB establishes a long-term strategic supply relationship with GE to supply them with products from across the ABB portfolio. The acquisition includes a long-term right to use the GE brand.
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