en.Wedoany.com Reported - ABB announced the acquisition of Rotork for $5.5 billion, further strengthening its electrification and automation strategy. Rotork is a global provider of mission-critical intelligent flow control solutions and the leading independent manufacturer of electric actuators. Under the agreement, Rotork shareholders will receive 503 pence in cash per share, representing a premium of approximately 60% over the three-month average price before the announcement, and will also be entitled to an interim dividend of up to 3 pence per share for the period ending June 30, 2026. The enterprise value of the transaction is approximately $5.5 billion, corresponding to a multiple of about 5.3 times actual sales in 2025 and approximately 19.5 times EBITDA, which is expected to decrease to the teens after accounting for synergies. The Rotork board has unanimously approved the deal and recommended shareholders vote in favor, with the transaction expected to close in the first half of 2027.
Rotork's business in mission-critical flow control and instrumentation is highly complementary to ABB's existing automation portfolio, helping to strengthen ABB's position at the field device level. Field devices are located close to industrial processes, collecting information, measuring operating conditions, or controlling machinery based on automation system instructions. Through this acquisition, ABB will expand its automation portfolio, enhancing the closed loop of sensing, control, and execution via intelligent field devices and software to achieve safer, more efficient, and sustainable operations. Rotork's products are widely used in industries such as oil and gas, chemicals, water, power generation, industrial processing, and data centers, where reliability, safety, and precision are critical, controlling the flow of liquids, gases, and materials in pipelines and processing facilities.
ABB expects Rotork to accelerate growth by leveraging its global scale, market coverage, service network, and digital capabilities, while expanding service models based on the installed base, bringing more lifecycle opportunities such as maintenance, upgrades, spare parts, diagnostics, and asset management. After the merger, ABB can offer a more complete portfolio integrating sensors, control systems, industrial software, and physical regulating equipment, and is also expected to increase participation in major infrastructure, energy, and industrial projects. Upon completion of the transaction, Rotork is expected to operate as a standalone division within ABB's automation business area, retaining its entrepreneurial culture, technical expertise, and customer relationships. ABB stated it has no plans for significant changes to Rotork's UK operations, and the UK will remain an important manufacturing and technology hub. ABB currently employs over 1,700 people in the UK and plans to support leadership continuity while collaborating with Rotork's management team to facilitate business integration.
Financial data shows that Rotork achieved an average annual organic revenue growth rate of approximately 8% from 2022 to 2025, with revenue of about $1 billion in 2025 and an adjusted operating margin of 24.6%. Rotork is expected to add approximately 3% to ABB's total revenue, and as part of ABB's automation business area, it is expected to contribute about 12% to that segment's revenue, immediately improving the operating EBITDA margin for both ABB overall and the business area.
