ABB announces the acquisition of Aurora Motors

Rhea-AI Summary

ABB has announced the acquisition of Aurora Motors, a $4 million U.S. Vertical Pump Motors provider with operations in Shanghai and California. Aurora Motors serves customers in 30 countries across agriculture, municipality, industrial, and fire protection sectors. The acquisition, expected to close by end of 2024, enhances NEMA's product portfolio and global market presence. This strategic move is part of ABB's Motion Business area's growth strategy, strengthening their position in the $3.4 billion NEMA motor industry. The deal will expand ABB's supply chain and improve global customer support, though financial terms weren't disclosed.

Positive

• Acquisition expands ABB's product portfolio in the vertical pump motors segment
• Gains access to established customer base across 30 countries
• Strengthens presence in strategic markets including agriculture and fire protection
• Enhances supply chain capabilities through Aurora's operations in China and US
• Complements existing NEMA motors division in $3.4B market

Negative

• Small revenue contribution ($4M) relative to ABB's size
• Undisclosed acquisition cost creates uncertainty for investors

Insights

M&A Analyst

This acquisition, while small in absolute terms ($4 million revenue target), represents a strategic bolt-on for ABB's Motion Business area, particularly the NEMA Motors Division. The vertical pump motors market is a specialized niche with high barriers to entry and stable demand from essential industries like water management and fire protection.

The deal brings three key strategic benefits:

• Geographic expansion into new markets through Aurora's presence in 30 countries
• Supply chain optimization with manufacturing capabilities in China
• Product portfolio enhancement in the specialized vertical pump motor segment

Given the global NEMA motor market size of $3.4 billion, this acquisition, while modest, fills important product gaps and strengthens ABB's competitive position in critical infrastructure sectors. The timing aligns with increasing infrastructure spending globally, particularly in water management and industrial automation.

Industrial Technology Analyst

The strategic value of this acquisition extends beyond immediate financial impact. Aurora Motors' expertise in vertical pump motors complements ABB's existing NEMA motor portfolio, particularly in mission-critical applications like municipal water systems and fire protection. The integration of Aurora's specialized knowledge with ABB's advanced manufacturing capabilities and global distribution network creates significant operational synergies.

The deal strengthens ABB's position in the growing industrial automation sector, where reliable motor solutions are essential for critical infrastructure. Access to Aurora's established customer base in 30 countries provides immediate market entry opportunities and cross-selling potential for ABB's broader product range.

• Aurora Motors is a global provider of Vertical Pump Motors
• Their products are distributed in 30 countries spanning the agriculture, municipality, industrial and fire protection industries
• The acquisition represents a significant enhancement to NEMA's product portfolio, bolstering the most comprehensive range of industrial electric motors in the global market

FORT SMITH, Ark., Nov. 5, 2024 /PRNewswire/ -- ABB announced today it has signed an agreement to purchase Aurora Motors. This acquisition provides a well-regarded product portfolio, a longstanding customer base in 30 countries and an experienced customer-centered sales structure, as well as solid partnerships with strategic suppliers. Aurora Motors is a $4 million U.S. Vertical Pump Motors provider, with engineering and operations in Shanghai, China and a corporate office and distribution center in Hayward, California. Financial terms were not disclosed, and the transaction is expected to be closed before the end of the 2024 financial year.

This transaction is part of the Motion Business area's profitable growth strategy, and it will allow the NEMA Motors Division to enhance its product offering, expand its supply chain and improve support to its global customer base.

"This bolt-on acquisition is a strategic move that not only expands our global footprint but also fills key market white spots. This acquisition aligns with our vision to enhance innovation and deliver unparalleled value to our customers worldwide," said Jesse Henson, President of ABB's NEMA Division. "By integrating Aurora Motors expertise, we are poised to accelerate growth and redefine industry standards, ensuring long-term success for our stakeholders."

"Combining Aurora's extensive experience and expertise in the vertical pump motor sector with ABB's top-tier operations and commitment to excellence in the industry is genuinely thrilling!" said Conroy Shum, President of Aurora Motors.

The global NEMA motor industry, roughly $3.4 billion in size*, comprises industrial electric motors primarily used within North America. NEMA motors are essential components used to run equipment in industries such as food and beverage, oil and gas, mining & aggregate, and water and wastewater and in applications like those which move air, liquids, and units.

*low voltage motors report 2023

ABB is a global technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. By connecting its engineering and digitalization expertise, ABB helps industries run at high performance, while becoming more efficient, productive and sustainable so they outperform. At ABB, we call this 'Engineered to Outrun'. The company has over 140 years of history and more than 105,000 employees worldwide. ABB's shares are listed on the SIX Swiss Exchange (ABBN) and Nasdaq Stockholm (ABB). www.abb.com

ABB Motion, a global leader in motors and drives, is at the core of accelerating a more productive and sustainable future. We innovate and push the boundaries of technology to contribute to energy efficient, decarbonizing and circular solutions for customers, industries and societies. With our digitally enabled drives, motors and services we support our customers and partners to achieve better performance, safety and reliability. To help the world's industries outrun – leaner and cleaner, we deliver motor-driven solutions for a wide range of applications in all industrial segments. Building on over 140 years of domain expertise in electric powertrains, our more than 22,000 employees across 100 countries learn and improve every day. go.abb/motion.

For more information please contact:
Media Relations
Phone: +1 919-561-8639	ABB Motors and Mechanical
Email: chris.shigas@us.abb.com	5711 R. S. Boreham Jr. St., Fort Smith
	AR 72902 USA
Phone: +1 617-356-6612
Email: nani.duraes@us.abb.com

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SOURCE ABB

FAQ

What company did ABB acquire in November 2024?

ABB acquired Aurora Motors, a U.S. Vertical Pump Motors provider with operations in Shanghai, China and Hayward, California.

How much revenue does Aurora Motors generate annually?

Aurora Motors generates approximately $4 million in annual revenue.

When will ABB complete the Aurora Motors acquisition?

The acquisition is expected to close before the end of the 2024 financial year.

What is the size of the global NEMA motor industry where ABB operates?

The global NEMA motor industry is approximately $3.4 billion in size.