DJ ABB Ltd: ABB expands automation offering with acquisition of Rotork
ABB Ltd: ABB expands automation offering with acquisition of Rotork
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Zurich, Switzerland, July 16, 2026
ABB expands automation offering with acquisition of Rotork
-- Recommended all-cash offer at 503 pence per Rotork share; strategic transaction aligned with ABB's
purpose centred around electrification and automation
-- Highly attractive business with a leading product portfolio and excellent customer track record,
delivering attractive growth and margins
-- Rotork's mission-critical flow control and instrumentation solutions highly complementary to ABB's
existing automation portfolio
-- Rotork expected to add 3% to ABB's revenues with immediate accretion to Operational EBITA margin
-- Redeployment of net cash proceeds from Robotics divestment with further headroom for M&A and continuation
of share buybacks
Ad hoc Announcement pursuant to Art. 53 Listing Rules of SIX Swiss Exchange
ABB Ltd ("ABB") announces that it has agreed with Rotork plc ("Rotork"), a well-established global provider of
mission-critical intelligent flow control solutions and a leading independent manufacturer of electric actuators, the
terms of a recommended cash offer for the entire issued and to be issued share capital of Rotork. The transaction is
expected to further strengthen ABB's focus on electrification and automation and expand its Automation business area's
offering for large and complex infrastructure and industries.
Under the terms of the offer, each Rotork shareholder would be entitled to receive 503 pence in cash per Rotork share,
representing a premium of around 60% to Rotork's latest 3-month average share price. The transaction implies an
enterprise value of around USD5.5 billion, reflecting an EV/Sales (2025 actual) multiple of around 5.3 as well as an EV/
EBITDA (2025 actual) multiple of around 19.5x with the latter reducing towards the 'mid teens' level when accounting
for anticipated synergies.
Rotork shareholders will also be entitled to receive an interim dividend for the period to June 30, 2026 of up to 3
pence per Rotork share (the "Permitted Dividend") without any reduction to the offer value.
Compelling strategic fit
Rotork's business with well-established positions in mission-critical flow control and instrumentation is highly
complementary to ABB's existing automation portfolio and will strengthen ABB's position at the field-device layer. ABB
would benefit from an expanded automation offering, enhancing the "sense-control-act" automation loop with intelligent
field devices and software that continuously monitors and manages industrial processes for safer, more productive, and
sustainable operations. The mix of ABB's Automation business would be improved through increased exposure to
higher-margin products, services, and lifecycle revenues.
Through this proposed combination, Rotork would be able to benefit from ABB's global scale, market reach, service
presence, and digital and technology capabilities. This will facilitate accelerated growth in core and target segments
with a further opportunity to expand the installed-base service model bringing additional lifecycle opportunities. The
combination will allow Rotork to accelerate the development of intelligent device diagnostics and asset management
solutions with ABB's digital platforms. Additionally, Rotork would be able to leverage ABB's trusted customer
relationships and earlier project engagement to support participation in larger and more strategic projects, thereby
accelerating penetration of new customers, applications, and geographies.
Upon closing Rotork is expected to operate as a separate division under a strategic growth mandate within ABB's
Automation business area. This approach is in line with the ABB Way decentralized operating model that emphasizes
accountability, transparency, and speed in decision-making and execution, built on the principle that operating
decisions are best made within the divisions and close to customers.
Rotork recorded 8% average annual organic revenue growth in 2022 to 2025 serving segments including oil & gas,
chemical, process and industrial, including data centers, as well as water and power. With 2025 revenues of around USD1
billion and 2025 adjusted operating profit margin of 24.6%, Rotork is expected to add around 3% in revenues to ABB and
be immediately accretive to ABB's Operational EBITA margin. As part of ABB's Automation business area, Rotork is also
expected to add around 12% to the business area's revenues, supporting its growth ambitions, and be immediately
accretive to the business area's Operational EBITA margin.
Morten Wierod, CEO of ABB said: "ABB has followed Rotork over many years, and we admire the execution excellence,
engineering quality, and customer trust that Rotork's teams deliver each day. We are convinced of the compelling
strategic fit of the transaction that will expand our automation offering at the field device layer generating
significant value for customers, employees, and shareholders of both companies. As part of ABB, Rotork is expected to
accelerate its growth and value creation while preserving its entrepreneurial spirit and customer proximity that makes
this business so successful. With our strong balance sheet ABB has room for additional M&A and execution of its
announced share buyback program."
Dorothy Thompson, Chair of Rotork added: "The Board believes that the offer from ABB reflects the high quality of
Rotork and recognises the significant progress delivered through the successful implementation of our Growth+ strategy,
whilst providing an attractive opportunity for Rotork shareholders to accelerate the value creation of the Company's
strong future prospects, in cash at closing. The combination brings together two companies whose purposes are closely
aligned, with a shared focus on automation and electrification to enable more sustainable and efficient operations. The
Board also believes that ABB's decentralised operating model and commitment to run Rotork as a separate division will
benefit the Group's business, employees and wider stakeholders. As a result, the Board has unanimously agreed to
recommend the offer to Rotork shareholders."
Commitment to Rotork's UK footprint
The UK is an important market for ABB, with over 1,700 employees. ABB recognizes Rotork's role as a UK engineering
employer and contributor to the UK's industrial base. Its intention is to support continuity of leadership and to work
closely with Rotork's management team following completion, enabling a seamless integration. ABB has no current plans
to significantly change Rotork's presence in the UK which is expected to remain an important manufacturing and
technology base for Rotork.
Financing of the offer
ABB's capital allocation framework includes pursuing value-accretive acquisitions, and the company will finance the
transaction through existing cash resources (approximately USD5.8 billion cash and marketable securities as of June 30,
2026) as well as committed bank facilities. In addition, the signed divestment of ABB's Robotics business to SoftBank
is expected to deliver approximately USD4.8 billion of net cash proceeds at closing targeted for the second half of 2026,
further strengthening ABB's liquidity.
Timing and approvals
The transaction will be implemented by way of a court-sanctioned scheme of arrangement under the U.K. Companies Act
2006. Rotork's board of directors has unanimously approved the transaction and intends to recommend to its shareholders
to vote in favor of the transaction at its upcoming shareholders meeting.
The transaction is expected to close in the first half of 2027 and is subject to Rotork's shareholder vote and
customary regulatory approvals.
Barclays acted as sole financial advisor and Freshfields as legal advisor to ABB.
The full terms and conditions of the acquisition are set out in ABB's announcement of a firm intention to make an offer
for Rotork in accordance with Rule 2.7 of the Takeover Code (the "Rule 2.7 Announcement"), available at https://
new.abb.com/rotorkoffer
This information is information that ABB is obliged to make public pursuant to the EU Market Abuse Regulation. The
information was submitted for publication, through the agency of the contact person set out below, at 06.40am CET on
July 16, 2026.
ABB is a global technology leader in electrification and automation, enabling a more sustainable and resource-efficient
future. By connecting its engineering and digitalization expertise, ABB helps industries run at high performance, while
becoming more efficient, productive and sustainable so they outperform. At ABB, we call this 'Engineered to Outrun'.
The company has over 140 years of history and around 110,000 employees worldwide. ABB's shares are listed on the SIX
Swiss Exchange (ABBN) and Nasdaq Stockholm (ABB). www.abb.com
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For more information please contact:
Investor Relations
Ann-Sofie Nordh ABB Ltd
Media Relations Affolternstrasse 44
Phone: +41 43 317 71 11 8050 Zurich
Email: media.relations@ch.abb.com Switzerland
Phone: +41 43 317 71 11
Email: investor.relations@ch.abb.com
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