ABB Ltd. (ABB) entered into an agreement to acquire the Trasfor Group, a renowned producer of dry-type transformers and inductors for low-voltage and medium-voltage applications, for broadening its scope in specialty transformers business. With this acquisition agreement, ABB will be addressing the fast growing markets and applications. The financial terms of the deal were not disclosed.
Trasfor has its manufacturing base in Lugano, Switzerland and has two plants in Italy. Revenue generated by the company, which employs approximately 380 employees, was approximately $130 million in 2010.
Trasfor’s specialty products are used for drives, railway rolling stock, offshore wind power and other types of power generation based on renewable energy. Supplies from Trasfor are for a variety of industries such as marine, oil and gas.
Trasfor offers a range of energy-efficient products, which will complement ABB’s collection of transformers. There has been a rise in demand for Dry-type transformers, which are less flammable as it uses resin for insulation instead of oil. The acquisition will provide ABB an increased opportunity for expansion with a broader customer base and increased market presence. The acquisition is expected to be closed in the second half of 2011, subjected to customary regulatory approvals.
Based in Zurich (Switzerland), ABB is a power and automation technology company. The company operates in approximately 100 countries, structuring its global organization into five regions: Europe, Americas, Asia, the Middle East and Africa. A major competitor of ABB Ltd. is Siemens AG (SI).
We maintain a Zacks #2 Rank (short-term Buy recommendation) on ABB Ltd.
