ABB has signed an agreement to acquire U.S. transformer company Kuhlman Electric Corporation for an undisclosed amount from global private equity firm The Carlyle Group, expanding its power products portfolio in the Americas. Kuhlman Electric manufactures a wide range of high-quality transformers for the industrial and electric utility sectors.
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 $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.
The company is headquartered in Versailles, Kentucky and employs approximately 800 people.
Michel Demaré, ABB's chief executive officer and chief financial officer stated: "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. The addition of Kuhlman Electric's business into our power products portfolio will allow us to further capture opportunities for profitable growth. At the same time, our customers will benefit from our broader offering."
ABB plans to integrate Kuhlman Electric's operations into its power products business in North America.
Glenn A. Youngkin, managing director of The Carlyle Group, said: "Kuhlman Electric has been an excellent long-term investment for Carlyle. ABB is well positioned to further develop Kuhlman Electric's activities and operations and take the company to the next level of excellence."
The acquisition is subject to customary regulatory approvals. ABB expects the transaction to close in a few months.