ABB on July 28 announced plans to sell its Mechanical Power Transmission division, a.k.a, DODGE Bearings and Power Transmission, to Connecticut-based RBC Bearings Incorporated for $2.89 billion in cash. The deal, expected to wrap-up by the end of the year after the usual regulatory review, is intended to leverage both companies’ strengths in the aerospace, defense and industrial markets.
“Today, we are very pleased to announce the execution of an agreement between ABB and RBC Bearings to acquire DODGE,” said Michael J. Hartnett, RBC Bearings chairman, president and CEO. “The combination will enhance RBC Bearings’ capabilities, footprint, and customer base while increasing our access to DODGE’s attractive end markets. Our businesses are highly complementary, with DODGE bringing new offerings, new end markets, and more scale to the combined organization. We look forward to welcoming DODGE’s talented team to RBC Bearings.”
“We are delighted that DODGE has found an excellent new home with RBC Bearings, where it can continue its exciting growth story,” said ABB CEO Björn Rosengren. “This transaction further strengthens ABB’s balance sheet. In line with our capital allocation priorities, we plan to first use the proceeds from the transaction to fund organic growth, pay a rising sustainable dividend per share and make value-creating acquisitions.”
Greenville-based DODGE manufacturers mounted bearings, enclosed gearing and other power transmission components, primarily in the construction, food and beverage, warehousing, mining aftermarket and general machinery sectors. The company generated about $617 million in revenues in the 12 months ending June 30, according to RBC’s announcement.
