Shaping leadership in industrial automation
·
Acquisition
of B&R (Bernecker + Rainer Industrie-Elektronik GmbH) will close
ABB’s historic gap in machine and factory automation
·
Creating a uniquely comprehensive automation portfolio for customers globally
·
B&R
is a proven innovation leader in Programmable Logic Controllers (PLC),
Industrial PCs (IPC) and servo motion-based machine and factory
automation
·
B&R delivered a revenue CAGR of 11% over last two decades and annual sales of >$600 million[1]
in the highly attractive $20 billion machine and factory automation market segment
·
B&R's software and Internet of Things (IoT) solutions further strengthen ABB’s digital offering, ABB Ability™
·
Clear commitment to B&R's growth strategy, mid-term sales ambition of >$1 billion
·
Continuity of B&R's management, founders support integration phase as advisors
·
B&R's headquarters in Eggelsberg, Austria, to become ABB’s global center for machine and factory automation
·
Transaction funded in cash, operational EPS accretive in year one, closing expected in summer 2017
·
Purchase price not disclosed, multiple in line with peer valuations
ABB
today 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, digitalization and
electrification.
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.
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.
“B&R
is a gem in the world of machine and factory automation and this
combination is a once-in-a-lifetime opportunity.
This transaction marks a true milestone for ABB, 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,
digitalization and electrification,” said ABB CEO Ulrich Spiesshofer.
“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.”
“This
combination offers fantastic opportunities for B&R, its 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,”
said Josef Rainer, co-founder of B&R.
“This
is a strong signal for our employees as our operations in Eggelsberg
will become ABB’s global center for machine
and factory automation,” said Erwin Bernecker, co-founder of B&R.
“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.”
Complementary strengths
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.
B&R
has grown successfully with a revenue CAGR of 11 % 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 unrivaled
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 & 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 digitalized industries.
Substantial investments in innovation
Innovation
is at the heart of both companies. B&R invests more than 10 percent
of its sales
in R&D and employs more than 1,000 people in R&D and
application engineering. ABB spends $1.5 billion annually on R&D and
employs some 30,000 technologists and engineering specialists. Going
forward, ABB and B&R will continue to invest considerably in
R&D.
Automation
of machines and factories is a key driver of the Fourth Industrial
Revolution and the IoT. ABB will continue
B&R's strong solution-based business model and build on its deep
domain expertise to develop new software-based services and solutions
for end-to-end digitalization. ABB’s industry-leading digital offering,
ABB Ability, will now capitalize on the large installed
base, application and solution know-how, simulation software expertise
and advanced engineering tools of B&R.
Proven integration approach
On
closing of the transaction, B&R will become part of ABB’s
Industrial Automation division as a new global business unit – Machine
& Factory Automation – headed by the current Managing
Director, Hans Wimmer. Both companies consider B&R's management and
employees as a key driver of future growth and the business integration
together with their counterparts from ABB. The co-founders of B&R,
Erwin Bernecker and Josef Rainer, will act as advisors
during the integration phase to ensure continuity.
The
integration will be growth-focused and live by the
“best-of-both-worlds” principle, with ABB adding its own PLC and servo
drive activities to the offering of the new business
unit in a phased approach. ABB underlines its clear commitment to
continuing the B&R growth story by articulating a mid-term sales
ambition to exceed $1 billion.
ABB
is committed to further investing in the expansion of B&R’s
operations and to building on the company’s successful business model
and brand. B&R's headquarters in Eggelsberg will
become ABB’s global center for machine and factory automation.
Austria benefits as technology and business hub
With
this acquisition, ABB becomes the largest industrial automation player
in Austria. ABB has operated in Austria for more than 100 years. With
the strong future role, B&R and its
headquarters in Austria will play as part of ABB, Austria, particularly
Upper Austria, will benefit. The planned expansion of the R&D and
production activities in Eggelsberg and Gilgenberg will strengthen
Austria’s high-tech industrial landscape.
Transaction financials
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% of B&R's stand-alone revenue
in year four. The transaction is expected to close in summer 2017,
subject to customary regulatory clearances.
Nenhum comentário:
Postar um comentário