After about four years of restructuring, ABB Ltd., under the leadership of CEO Ulrich Spiesshofer, inked a deal with the industrial solutions division of General Electric Co. valued at $2.6 billion. The deal will fortify Swiss-based ABB’s US business, its largest market.
The company expects that the deal will generate about $200 million per year in savings. Spiesshofer is ready to spark a growth spurt after four years of regrouping and positioning to bring the company forward. This deal should help to expand ABB’s ability to offer urgent power, transformers and related services to its clients, which include large institutions such as hospitals, refineries and data centers.
Beginning around seven years ago the Zurich-based company has poured about $11 billion in capital investment into it operations in the United States. This new deal with GE will further enhance the company’s influence in North America.
On GE’s side, money from the deal with ABB will be used to fund its own restructuring plan. The industrial solutions division has about 13,000 employees.