The Baldor acquisition

Although initial contacts between ABB and US motor manufacturer Baldor had started a few months earlier, it was only in January 2010 when ABB finally made an unofficial offer for all of Baldor’s shares at $36 a piece. Baldor was one of the lead manufacturers of NEMA-compliant motors, the US specific standard, and the opportunity was great for ABB because the combination would allow the Zurich-based company to improve its position in the North American market while using Baldor’s distribution network to sell ABB’s drives. The huge value potential of the deal was however jeopardized by the two companies’ different cultures and the special consideration of Baldor as a family-founded company with strong values and close ties to the community.