ABB To Divest Mechanical Power Transmission Division To RBC Bearings For $2.9 Bln In Cash

ABB Ltd. (ANN.L,ABB) agreed to divest its Mechanical Power Transmission division, Dodge, to RBC Bearings Inc. (ROLL), for $2.9 billion in cash.

The transaction is expected to be completed by the end of the year 2021.

Dodge has about 1,500 employees worldwide and achieved revenues of about $600 million for the last twelve months ending June 30, 2021, of which more than 90 percent were generated in the Americas. The operating EBITA margin was about 23 percent. It produces at six manufacturing sites - 5 in the U.S. and 1 in China - and its headquarter is located in Greenville, South Carolina. The president of the division is Roger Costa.

ABB expects to book a non-operational pre-tax book gain of about $2.2 billion on the sale of Dodge.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Major covid vaccine makers said they are investigating Omicron, the new, heavily mutated coronavirus variant that was first detected in South Africa, and working to adapt their vaccines, if needed. The World Health Organization, which named the new variant omicron, said the new strain is a "variant of concern" that could pose a higher risk of reinfection compared to the previous mutations. This Black Friday and the following holiday season, retailers across the United States are urged to keep up their inventory amid expected surge in shopping as majority of Americans wait till last minute to fill their baskets, according to certain studies. A new Oracle Retail survey, which was conducted last week and presented earlier this week, showed that 66 percent of consumers were less than Eagle, Idaho -based Flagship Food Group is recalling certain TJ Farms Select brand frozen cauliflower, citing the potential to be contaminated with Listeria monocytogenes, the U.S. Food and Drug Administration said. The recall involves a limited number of cases of TJ Farms Select cauliflower that comes in 16 oz. packages with lot code 2077890089 and UPC code 75544000604-3.
Follow RTT