ABB Buys Rotork for US$5.5bn in Company’s Biggest-Ever Deal

ABB has agreed to acquire Rotork for a total value of approximately US$5.5bn, which would be the largest acquisition in the Swiss engineering group's history. The deal was announced at the same time as ABB's second-quarter results.

Under the terms of the recommended cash offer, Rotork shareholders would receive £5.03 per share (US$6.77), which is a premium of around 60% to the company's three-month average share price. Rotork shareholders would also receive an interim dividend of up to £0.03 per share for the period up to 30 June.

Rotork makes equipment that automatically opens, closes and controls valves regulating the flow of liquids and gases, serving customers across oil and gas, water and wastewater, power generation, chemicals, marine, mining and processing.

The transaction is expected to close in the first half of 2027, subject to a vote by Rotork shareholders and customary regulatory approvals.

Deal terms and strategic rationale

The transaction implies an EV/Sales multiple of around 5.3 and an EV/EBITDA multiple of around 19.5 times, based on Rotork's 2025 results. According to ABB, it expects that to fall towards the mid-teens once anticipated synergies are accounted for.

Rotork reported revenue of around US$1bn in 2025, having grown by approximately 8% year-on-year. ABB expects the acquisition to add around 3% to its own revenue, with immediate accretion to its operational EBITA margin.

Morten Wierod, CEO of ABB, says: "We are convinced of the compelling strategic fit of the transaction that will expand our automation offering at the field device layer."

Dorothy Thompson, Chair of Rotork, adds: "The Rotork 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."

Funding and financial position

ABB has confirmed that it is funding the acquisition using proceeds from the sale of its robotics division to SoftBank Group, a deal that was finalised in October 2025 for around US$4.8bn in cash.

Speaking on ABB's second-quarter results, Wierod said the company retains further capacity for acquisitions. "We still have firepower to do more M&A deals," he says, citing ABB's low debt, cash flow and proceeds from recent divestments.

Rotork will operate as a separate division within ABB's Automation business area once the deal completes.

Barclays acted as sole financial adviser to ABB, with Freshfields as legal adviser.

Part of a wider UK dealmaking wave

The Rotork acquisition adds to a recent run of major foreign bids for UK-listed companies in 2026, which is putting Britain on track to outstrip previous years for dealmaking activity. 

Other recent bids have included Intertek, Schroders and Unilever's food unit, as well as Ingredion's offer for Tate & Lyle in June.

The deal came alongside strong second-quarter results for ABB. Orders rose 30% to US$12.04bn, an all-time record for the company, and revenue increased 14% to US$9.48bn.

ABB said its order growth was helped by strong demand from data centre construction supporting AI infrastructure, as well as sustained investment in electrification and automation across its core markets.