ABB Buys Kuhlman Electric

ABB announced that it has signed an agreement to acquire U.S. transformer company Kuhlman Electric Corp., Versailles, Ky., from The Carlyle Group, a global private equity firm based in Washington, D.C. Terms of the deal were not disclosed. ABB expects the transaction to close in a few months.

Kuhlman Electric, which manufactures transformers for the industrial and electric utility sectors, had revenues of about $250 million last year, and has recorded profitable growth with double-digit annual growth over the past five years. ABB plans to integrate Kuhlman Electric's operations into its Power Products business in North America.

“This transaction is the first milestone of our acquisition strategy, which is focused on finding bolt-on acquisitions that selectively complement both our product range and geographical presence,” Demaré said. “The addition of Kuhlman Electric’s business into our power products portfolio will allow us to further capture opportunities for profitable growth. At the same time, our customers will benefit from our broader offering.”