en.Wedoany.com Reported - ABB has reached an agreement to acquire Rotork, a UK-based manufacturer of electric actuators and intelligent flow control solutions, in an all-cash deal valuing the company at approximately $5.5 billion. The transaction will expand ABB's portfolio in flow control, instrumentation, and intelligent field devices, serving industries such as oil and gas, chemicals, water, energy, data centers, and process manufacturing.
This acquisition is a key strategic move for ABB to strengthen its focus on electrification and industrial automation, particularly targeting critical applications in large-scale infrastructure, process plants, and asset-intensive industries. The offer includes acquiring Rotork shares at 503 pence each, representing a premium of approximately 60% over the company's average share price in the three months prior to the announcement. The transaction is still subject to Rotork shareholder approval, relevant regulatory clearances, and customary closing conditions.
Rotork is one of the leading independent manufacturers of electric actuators and valve flow control equipment for industrial facilities. Its solutions control, monitor, and automate the flow of liquids, gases, and other materials in plants, water networks, energy facilities, and critical infrastructure. For ABB, this acquisition will expand its coverage at the field device level—the instruments, sensors, actuators, and equipment that directly interact with physical processes in plants. The integration will strengthen ABB's automation cycle based on the "sense, control, and act" concept by introducing intelligent devices capable of generating information, executing actions, and supporting continuous monitoring of industrial processes. ABB aims to offer more comprehensive solutions to enhance safety, productivity, energy efficiency, and asset availability.
Upon completion of the transaction, Rotork will operate as an independent division within ABB's Automation business area. The company will maintain specific growth tasks, following a decentralized operating model known as the ABB Way, which is designed to keep decision-making close to customers and business units. ABB stated that Rotork can benefit from its global scale, sales network, international service coverage, and digital capabilities. The integration will also accelerate the development of intelligent diagnostics, predictive maintenance, and industrial asset management solutions by combining digital platforms.
Rotork recorded revenue of approximately $1 billion in 2025, with an adjusted operating profit margin of 24.6%. Between 2022 and 2025, the company reported an average annual organic growth rate of 8%, driven by its involvement in industries such as oil and gas, chemicals, water and wastewater treatment, power generation and distribution, industrial processes, data centers, and critical infrastructure. ABB estimates that Rotork will contribute approximately 3% of its total revenue and about 12% of its Automation business revenue. The company also expects the acquisition to have an immediate positive impact on its EBITA operating margin, due to Rotork's profitability and the increased proportion of products, services, and contracts related to equipment lifecycles.
Actuators are core components for automating industrial valves. These devices convert electrical, pneumatic, or hydraulic signals into mechanical motion to open, close, or regulate valves within facilities. Their operation is critical for controlling variables such as pressure, temperature, flow rate, and liquid level, especially in industries where failures can lead to production shutdowns, environmental risks, economic losses, or safety incidents. Acquiring Rotork will enhance ABB's ability to participate in projects requiring integrated control, instrumentation, electrification, software, and asset management solutions. At the same time, facing the growing automation demands of industrial facilities, this transaction will also consolidate ABB's market position, helping customers reduce emissions, optimize energy use, and improve operational reliability.
ABB stated that it will finance the transaction using available cash and committed bank credit facilities. As of June 30, 2026, the company held approximately $5.8 billion in cash and marketable securities. The company also expects to receive net proceeds of approximately $4.8 billion from the sale of its ABB Robotics business to SoftBank, which is expected to close in the second half of 2026. ABB stated that even after financing the acquisition of Rotork, it retains the capacity to pursue new mergers and acquisitions and continue its share buyback program.
Rotork possesses significant technical, industrial, and engineering strength in the UK. ABB confirmed that it currently does not plan to make major adjustments to the company's operations in the UK and will maintain leadership continuity after the transaction closes, working with the current management team. The Swiss company, which employs over 1,700 people in the UK, considers Rotork's facilities to remain an important base for manufacturing, engineering, and technology development.
Rotork's board has unanimously approved the terms of the transaction and plans to recommend that shareholders vote in favor of the proposal. The transaction is expected to close in the first half of 2027, subject to shareholder approval, regulatory clearances, and the resolution of judicial procedures under UK company law. If successfully completed, this acquisition will enhance ABB's position in the global process automation market and expand its ability to serve industries requiring greater digitalization, operational reliability, and intelligent control.
