ABB expands automation offering with acquisition of Rotork

Rotork expected to add 3% to ABB’s revenues with immediate accretion to Operational EBITA margin 

Zurich, Switzerland, July 2026 – ABB Ltd recently announced that it has agreed with Rotork plc, a well-established global provider of mission-critical intelligent flow control solutions and a leading independent manufacturer of electric actuators, the terms of a recommended cash offer for the entire issued and to be issued share capital of Rotork. The transaction is expected to further strengthen ABB’s focus on electrification and automation and expand its Automation business area’s offering for large and complex infrastructure and industries. 

Under the terms of the offer, each Rotork shareholder would be entitled to receive 503 pence in cash per Rotork share, representing a premium of around 60% to Rotork’s latest 3-month average share price. The transaction implies an enterprise value of around $5.5 billion, reflecting an EV/Sales (2025 actual) multiple of around 5.3 as well as an EV/EBITDA (2025 actual) multiple of around 19.5x with the latter reducing towards the 'mid teens' level when accounting for anticipated synergies. 

Rotork shareholders will also be entitled to receive an interim dividend for the period to June 30, 2026 of up to 3 pence per Rotork share without any reduction to the offer value. 

Rotork’s business with well-established positions in mission-critical flow control and instrumentation is highly complementary to ABB’s existing automation portfolio and will strengthen ABB’s position at the field-device layer. ABB would benefit from an expanded automation offering, enhancing the “sense-control-act” automation loop with intelligent field devices and software that continuously monitors and manages industrial processes for safer, more productive, and sustainable operations. The mix of ABB’s Automation business would be improved through increased exposure to higher-margin products, services, and lifecycle revenues. 

Through this proposed combination, Rotork would be able to benefit from ABB’s global scale, market reach, service presence, and digital and technology capabilities. This will facilitate accelerated growth in core and target segments with a further opportunity to expand the installed-base service model bringing additional lifecycle opportunities. The combination will allow Rotork to accelerate the development of intelligent device diagnostics and asset management solutions with ABB’s digital platforms. Additionally, Rotork would be able to leverage ABB’s trusted customer relationships and earlier project engagement to support participation in larger and more strategic projects, thereby accelerating penetration of new customers, applications, and geographies.

Morten Wierod, CEO of ABB said: “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. 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. 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. With our strong balance sheet ABB has room for additional M&A and execution of its announced share buyback program.” 

Dorothy Thompson, Chair of Rotork added: “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, whilst providing an attractive opportunity for Rotork shareholders to accelerate the value creation of the Company's strong future prospects, in cash at closing. 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. The Board also believes that ABB's decentralised operating model and commitment to run Rotork as a separate division will benefit the Group's business, employees and wider stakeholders. As a result, the Board has unanimously agreed to recommend the offer to Rotork shareholders.”