ABB agrees £4.1bn acquisition of Rotork to strengthen automation business

October 2026 | DEALFRONT | MERGERS & ACQUISITIONS

Financier Worldwide Magazine

October 2026 Issue

Seeking to strengthen its capabilities in electrification and automation technologies, Swiss multinational ABB has agreed to acquire UK engineering firm Rotork in a transaction valued at approximately $5.5bn (£4.1bn).

Under the terms of the agreement, Rotork shareholders will receive 503p in cash for each share held, representing a premium of around 60 percent to the company’s average share price over the previous three months.

The acquisition brings together two businesses with closely aligned activities in automation and industrial technology. ABB believes the deal will strengthen its position in automation by adding Rotork’s intelligent flow-control and instrumentation technologies to its existing portfolio.

Rotork specialises in electric actuators and flow-control solutions used across industries including energy, water, chemicals and industrial processing. Its products help customers monitor, control and automate critical infrastructure and industrial processes.

Through the combination, Rotork is expected to benefit from ABB’s global scale, broader market reach, extensive service network and digital technology capabilities. ABB, meanwhile, will expand its automation offering with intelligent field devices and software that monitor and manage industrial processes, helping customers improve safety, productivity and sustainability.

Rotork’s board has unanimously approved the transaction and intends to recommend that shareholders vote in favour of the deal at the forthcoming shareholder meeting.

“The board believes that ABB’s offer reflects the high quality of Rotork and recognises the significant progress delivered through the successful implementation of our growth strategy,” said Dorothy Thompson, chair of Rotork. “The offer also provides an attractive opportunity for Rotork shareholders to accelerate the value creation of the company’s strong future prospects.”

Following completion, Rotork is expected to operate as a separate division within ABB’s automation business area under a strategic growth mandate. The arrangement is consistent with ABB’s decentralised operating model and is intended to preserve Rotork’s entrepreneurial culture while benefitting from the resources of a larger global organisation.

“The combination brings together two companies whose purposes are closely aligned, with a shared focus on automation and electrification to enable more sustainable and efficient operations,” continued Ms Thompson. “The board also believes that ABB’s decentralised operating model and commitment to run Rotork as a separate division will benefit our business, employees and wider stakeholders.”

ABB expects the acquisition to increase group revenues by around 3 percent and to be immediately accretive to its operational earnings before interest, tax, depreciation and amortisation margin. Within ABB’s automation business area, Rotork is expected to contribute approximately 12 percent additional revenue.

The acquisition represents one of the largest deals in ABB’s history and forms part of the company’s strategy to expand its automation capabilities while deploying capital generated from recent portfolio changes.

ABB is a global technology company focused on electrification and automation. Founded more than 140 years ago, it employs around 110,000 people worldwide and serves customers across a wide range of industrial and infrastructure markets.

“As part of ABB, Rotork is expected to accelerate its growth and value creation while preserving its entrepreneurial spirit and customer proximity that makes this business so successful,” said Morten Wierod, chief executive of ABB. “With our strong balance sheet ABB has room for additional M&A and execution of its announced share buyback programme.”

The transaction is expected to complete during the first half of 2027, subject to shareholder approval and customary regulatory clearances.

Barclays is acting as sole financial adviser to ABB, while Freshfields is serving as legal adviser.

Mr Wierod added: “We are convinced of the compelling strategic fit of the transaction that will expand our automation offering at the field device layer generating significant value for customers, employees, and shareholders of both companies.”

Fraser Tennant