ABB Strengthens Automation Portfolio with Recommended Acquisition of Rotork
ABB has announced a definitive agreement to acquire Rotork, a well-established global provider of mission-critical intelligent flow control solutions and a leading independent manufacturer of electric actuators. The recommended cash offer values Rotork at approximately $5.5 billion, representing a significant premium of around 60% to Rotork's latest three-month average share price. Each Rotork shareholder will receive 503 pence in cash per share, along with an interim dividend of up to 3 pence per share for the period ending June 30, 2026.
This acquisition is not just about scale—it is about strategic alignment. Rotork's expertise in flow control and instrumentation is highly complementary to ABB's existing automation portfolio. By bringing Rotork into the fold, ABB is strengthening its position at the field-device layer, completing the automation loop with intelligent devices and software that continuously monitor and manage industrial processes. The result, the company believes, will be safer, more productive, and more sustainable operations for customers across a wide range of industries.
A Compelling Strategic Fit
For ABB, the deal is expected to expand its automation offering and improve the mix of its Automation business with higher-margin products, services, and lifecycle revenues. The transaction implies an EV/Sales multiple of approximately 5.3x and an EV/EBITDA multiple of around 19.5x based on 2025 actual figures—the latter expected to decrease toward the mid-teens when accounting for anticipated synergies. Rotork, meanwhile, recorded 8% average annual organic revenue growth from 2022 to 2025, serving segments that include oil and gas, chemicals, process industries, data centers, water, and power. With 2025 revenues of roughly $1 billion and an adjusted operating profit margin of 24.6%, Rotork is expected to add approximately 3% to ABB's revenues and be immediately accretive to ABB's Operational EBITA margin.
ABB Chief Executive Officer Morten Wierod expressed genuine admiration for Rotork's achievements: "ABB has followed Rotork over many years, and we admire the execution excellence, engineering quality, and customer trust that Rotork's teams deliver each day." He emphasized the compelling strategic fit of the transaction, which he believes will generate significant value for customers, employees, and shareholders of both companies. Importantly, Wierod stressed that Rotork would retain its entrepreneurial spirit and customer proximity—qualities that have made it so successful—while benefiting from ABB's global scale and digital capabilities.
Preserving Rotork's Identity and Growth
Upon closing, Rotork is expected to operate as a separate division within ABB's Automation business area, under a strategic growth mandate. This approach is consistent with the ABB Way—a decentralized operating model that emphasizes accountability, transparency, and speed in decision-making. The principle is simple: operating decisions are best made within the divisions, close to customers. For Rotork, this means continuity of leadership and the freedom to maintain its proven Growth+ strategy while accessing new opportunities.
Dorothy Thompson, Chair of Rotork, expressed confidence in the deal, noting that the Board unanimously agreed to recommend it to shareholders. "The Board believes that the offer from ABB reflects the high quality of Rotork and recognises the significant progress delivered through the successful implementation of our Growth+ strategy," she said. She also highlighted the alignment of purpose between the two companies, both focused on automation and electrification to enable more sustainable and efficient operations.
Commitment to the UK and Financing
ABB has made clear its commitment to Rotork's UK footprint. With over 1,700 employees already in the UK, ABB recognizes Rotork's role as a significant engineering employer and contributor to the country's industrial base. There are no current plans to significantly change Rotork's presence in the UK, which is expected to remain an important manufacturing and technology base.
The transaction will be financed through ABB's existing cash resources—approximately $5.8 billion in cash and marketable securities as of June 30, 2026—as well as committed bank facilities. Additionally, the signed divestment of ABB's Robotics business to SoftBank, expected to close in the second half of 2026, is projected to deliver approximately $4.8 billion in net cash proceeds, further strengthening ABB's liquidity and providing room for additional M&A and the execution of its share buyback program.