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ABB to sell Thomas & Betts' HVAC business for $260m

Staff writer |
Power and automation technology group ABB has signed an agreement to divest the Thomas & Betts' heating, ventilation and air conditioning (HVAC) business for $260 million in an all-cash transaction to Nortek, Inc. of Providence, Rhode Island.

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The sale is expected to close in the second quarter of 2014, subject to regulatory clearance.

ABB is divesting this business because of limited synergies with ABB's core portfolio. ABB will continue to supply its high efficiency electrical motors and industry leading drives as well as its low voltage products range to the HVAC industry.

The acquisition of Thomas & Betts in 2012 advanced ABB's strategy of expanding the reach of its Low Voltage Products division into key geographies, sectors and products. By combining ABB's low-voltage protection, control and measurement products with Thomas & Betts' electrical components, ABB has created a broader low-voltage offering with significant market access.

In North America, the acquisition of Thomas & Betts doubled ABB's addressable market to approximately $24 billion, thanks to Thomas & Betts' North American network of more than 6,000 distributor locations and wholesalers. In Europe and Asia, ABB's well-established distribution capabilities and coverage provide much greater market access for Thomas & Betts' product portfolio.

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