ABB to Purchase Gear Supplier Rotork for $5.6 Billion

By the Editorial Team · Friday, July 17, 2026

ABB has agreed to acquire U.K.-based industrial equipment supplier Rotork for approximately £4.14 billion ($5.6 billion) in an all-cash deal supported unanimously by Rotork's board. The acquisition will strengthen ABB’s position in electrification and automation, boosting revenue by about 3% and is expected to close in the first half of 2027 pending regulatory and shareholder approval.

ABB has reached an agreement to acquire Rotork, a U.K.-based industrial-equipment supplier, in a deal valued at approximately £4.14 billion ($5.6 billion). The Swiss industrial-technology company announced the transaction on Thursday, marking a strategic step to enhance its automation business.

The deal involves an all-cash offer of £5.03 per share, representing a 73% premium over Rotork’s closing share price on the previous trading day. Rotork’s board of directors has expressed unanimous support for the acquisition and plans to recommend the offer to its shareholders.

ABB said the acquisition will be funded using proceeds from the recent sale of its robotics division to Japan’s SoftBank Group. That transaction, completed earlier in 2026, generated $5.4 billion, allowing ABB to pursue new investment opportunities while maintaining financial flexibility. ABB Chief Executive Morten Wierod highlighted that the company's strong balance sheet positions it to continue pursuing mergers and acquisitions alongside ongoing stock repurchase programs.

The purchase of Rotork is expected to expand ABB’s footprint in the electrification and automation sectors, areas currently experiencing increased demand largely driven by growth in data centers and digital infrastructure. ABB projects the deal will increase its revenues by about 3% and contribute positively to profitability once the transaction is finalized.

The acquisition is anticipated to close in the first half of 2027, subject to customary regulatory approvals and shareholder consent. This move reinforces ABB’s strategy to leverage acquisitions to build on its core businesses amid the evolving industrial technology landscape.

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