ABB, a leading global technology company in power and automation, has announced the acquisition of B&R, the largest independent provider focused on product- and software-based, open-architecture solutions for machine and factory automation worldwide.

B&R, founded in 1979 by Erwin Bernecker and Josef Rainer is headquartered in Eggelsberg, Austria, employs more than 3,000 people, including about 1,000 R&D and application engineers. It operates across 70 countries, generating sales of more than $600 million (2015/16) in the $20 billion machine and factory automation market segment.

The combination will result in an unmatched, comprehensive offering for customers of industrial automation, by pairing B&R's innovative products, software and solutions for modern machine and factory automation with ABB’s world-leading offering in robotics, process automation, digitalisation and electrification, said a statement from the company.

Through the acquisition, ABB expands its leadership in industrial automation and will be uniquely positioned to seize growth opportunities resulting from the Fourth Industrial Revolution, it said.

In addition, ABB takes a major step in expanding its digital offering by combining its industry-leading portfolio of digital solutions, ABB Ability, with B&R's strong application and software platforms, its large installed base, customer access and tailored automation solutions, it added.

Ulrich Spiesshofer, CEO of ABB, said: “B&R is a gem in the world of machine and factory automation and this combination is once-in-a-lifetime opportunity.”

“This transaction marks a true milestone for our company, as B&R will close the historic gap within ABB’s automation offering. This is a perfect fit and will make us the only industrial automation provider offering customers the entire spectrum of technology and software solutions around measurement, control, actuation, robotics, digitalisation and electrification,” he said.

“This acquisition perfectly delivers on our Next Level strategy. With our unique digital offering and our installed base of more than 70 million connected devices, 70,000 control systems and now more than 3 million automated machines and 27,000 factory installations around the world, we enable our combined global customer base to seize the huge opportunities of the Fourth Industrial Revolution,” he added.

Josef Rainer, co-founder of B&R, said: “This combination offers fantastic opportunities for us, and our customers and employees. We are convinced that ABB offers the best platform for the next chapter of our growth story.”

“ABB’s global presence, digital offering and complementary portfolio will be key for us to further accelerate our pace of innovation and growth,” he said.

Erwin Bernecker, co-founder of B&R, said: “This is a strong signal for our employees as our operations in Eggelsberg will become ABB’s global centre for machine and factory automation.”

“The most important thing to me is that the companies and their people fit so well together and that our founding location will play such a key role,” he said.
With the acquisition, ABB will expand its industrial automation offering by integrating B&R's innovative products in PLC, Industrial PCs and servo motion as well as its software and solution suite. ABB will offer its customers a uniquely comprehensive, open-architecture automation portfolio, said a statement.

B&R has grown successfully with a revenue compound annual growth rate (CAGR) of 11 per cent over the last two decades. Revenues more than quintupled since 2000 to more than $600 million (2015/16).

The company has a rapidly growing global customer base of more than 4,000 machine manufacturers, a proven track record in automation software and solutions and unrivalled application expertise for customers in the machine and factory automation market segment.

Both companies have complementary portfolios. ABB is a leading provider of solutions serving customers in utilities, industry and transport and infrastructure. B&R is a leading solution provider in the automation of machines and factories for industries such as plastics, packaging, food and beverage. The joint commitment to open architecture increases customer choice and flexibility facilitating connectivity in increasingly digitalised industries, it said.

The transaction multiple is in line with peer valuations. The parties agreed not to disclose the purchase price. ABB will finance the acquisition in cash. The transaction is expected to be operationally EPS accretive in the first year, and is expected to add significant synergies of about 8 per cent of B&R's stand-alone revenue in year four.

The transaction is expected to close in summer 2017, subject to customary regulatory clearances. – TradeArabia News Service