ABB (Zurich, Switzerland) will acquire transformer company Kuhlman Electric Corp. (Versailles, Kentucky, U.S.) from private equity firm The Carlyle Group. The acquisition, which is expected to close later this year, will expand ABB's power products portfolio in the Americas.
Kuhlman Electric has demonstrated profitable growth with double-digit annual sales growth over the past five years. In 2007, the company had revenues of around US$250 million. The business is well positioned to benefit from the investments required to modernize and expand the U.S. utility infrastructure and to increase industrial efficiency and reliability.
“This transaction is the first milestone of our acquisition strategy, which is focused on finding bolt-on acquisitions that selectively complement both our product range and geographical presence,” said Michel Demaré, ABB's CFO.