ABB has announced the acquisition of Thomas & Betts for $3.9 billion.
The power and automation technology group has announced the agreement which will see ABB grow its scope in North America.
According to ABB, the "complementary combination of Thomas & Betts electrical components and ABB’s low voltage protection, control and measurement products would create a broader low voltage portfolio……and will enable ABB to double its market in North America to approximately $24 billion".
Joe Hogan, ABB CEO, stated that "strategically, it’s a great fit".
Thomas & Betts will be combined with ABB’s existing North American low voltage products division to become a new business unit led under Thomas & Betts chairman Dominic Pileggi.
ABB secured a $4 billion debt facility from the Bank of America, which is will use to acquire Thomas & Betts for $72 per share.
It expects the acquisition will provide approximately $200 million in annual synergies by 2016.
"This [acquisition] is a unique opportunity for ABB to grow in the largely untapped North American low voltage products market," ABB’s Tarak Metha said.
Under the terms of agreement between the companies, the move is structured as a merger.