ABB is selling all assets of Baldor’s generator set business to Generac Holdings Inc., a Wisconsin-based producer of generators and other engine-powered products. The sale is expected to close later this year; terms of the transaction were not disclosed.
ABB says it is divesting the genset business because of limited synergies with ABB’s core portfolio, and because Generac is in a better position to create additional value from the business. The business was acquired as part of ABB’s acquisition of Baldor Electric in 2011, and accounts for about 3% of Baldor’s total sales. Baldor’s genset business produces a line of portable, standby, prime power and peak-shaving generators from 3kW to 2500kW in LP, natural gas or diesel.
“The divestment is in line with our strategy to continuously optimize our portfolio and to focus our efforts on driving profitable growth in our core automation and power businesses,” said ABB CEO, Ulrich Spiesshofer. “Overall, the fit between ABB and Baldor is excellent, as we are seeing from the value that has already been created.”
