ZURICH, SWITZERLAND, JULY 26, 2021
ABB to divest Mechanical Power Transmission division (Dodge) to
RBC Bearings for $2.9 billion
• Transaction creates a leading manufacturer of highly engineered,
performance-critical bearings and motion control components
• Transaction expected to be completed by the end of the year 2021
• Cash proceeds to be used according to capital allocation priorities
ABB today announced it has signed a definitive agreement to divest its Mechanical Power Transmission
division (Dodge) to RBC Bearings Incorporated (Nasdaq: ROLL), for $2.9 billion in cash. The transaction
will create a leading manufacturer of highly engineered, performance-critical bearings and motion
control components. The transaction is expected to be completed by the end of the year 2021, subject to
customary closing conditions, including regulatory review.
For more than 140 years, the Dodge business has been a leader in the design, production, and marketing
of mounted bearings, enclosed gearing, and power transmission components. It offers one of the
broadest portfolios of mechanical power transmission products in the market, selling to industries such
as surface mining, aggregates & cement, warehousing and food & beverage.
Dodge has roughly 1,500 employees worldwide and achieved revenues of approximately $600 million for
the last twelve months ending June 30, 2021, of which more than 90 percent were generated in the
Americas. The operating EBITA margin was approximately 23 percent. It produces at six manufacturing
sites – 5 in the U.S. and 1 in China – and its headquarter is located in Greenville, South Carolina. The
president of the division is Roger Costa.
“We are delighted that Dodge has found an excellent new home with RBC Bearings, where it can continue
its exciting growth story,” said ABB CEO Björn Rosengren. “This transaction further strengthens ABB’s
balance sheet. In line with our capital allocation priorities, we plan to first use the proceeds from the
transaction to fund organic growth, pay a rising sustainable dividend per share and make value-creating
acquisitions. Furthermore, we will give an update on our plans for the Turbocharging exit and possible
listing of our E-Mobility division in due course.”
“Today, we are very pleased to announce the execution of an agreement between ABB and RBC Bearings
to acquire Dodge. The combination will enhance RBC Bearings’ capabilities, footprint, and customer
access while increasing our exposure to Dodge’s attractive end markets. Our businesses are highly
complementary, with Dodge bringing new offerings, new end markets, and more scale to the combined
organization. The combined company will have an attractive position in the Aerospace, Defense and
Industrial markets with a diversified client base and expansive geographic footprint,” said RBC Bearings
Chairman, President and Chief Executive Officer, Dr. Michael J. Hartnett. “We look forward to welcoming
Dodge’s talented team to RBC Bearings.”
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ABB expects to book a non-operational pre-tax book gain of approximately $2.2 billion on the sale of
Dodge. ABB also expects the transaction related cash tax outflows to be approximately $400 million.
J.P. Morgan is acting as exclusive financial adviser and Kirkland & Ellis LLP is serving as legal counsel to
ABB on the transaction.
Important notice about forward-looking information
This press release contains forward-looking statements relating to the divestment by ABB of its
Mechanical Power Transmission (Dodge) division. Such forward-looking statements can be identified by
words such as plans, intends, expects, and other similar terms. Such forward-looking statements are
based on current expectations and involve inherent risks and uncertainties, including factors that could
delay, divert or change any of them, and could cause actual outcomes and results to differ materially
from current expectations. No forward-looking statement can be guaranteed. Among other risks, there
can be no guarantee that the divestment will be completed, or if it is completed, that it will close within
the anticipated time period or that the expected benefits of the divestment will be realized. Forwardlooking statements in the press release should be evaluated together with the many uncertainties that
affect ABB’s business, particularly those identified in the cautionary factors discussion in ABB’s Annual
Report on Form 20-F. ABB undertakes no obligation to publicly update any forward-looking statement,
whether as a result of new information, future events, or otherwise.
ABB (ABBN: SIX Swiss Ex) is a leading global technology company that energizes the transformation of
society and industry to achieve a more productive, sustainable future. By connecting software to its
electrification, robotics, automation and motion portfolio, ABB pushes the boundaries of technology to
drive performance to new levels. With a history of excellence stretching back more than 130 years, ABB’s
success is driven by about 105,000 talented employees in over 100 countries. www.abb.com
About RBC Bearings
RBC Bearings Incorporated is an international manufacturer and marketer of highly engineered precision
bearings and components. Founded in 1919, the Company is primarily focused on producing highly
technical or regulated bearing products and components requiring sophisticated design, testing and
manufacturing capabilities for the diversified industrial, aerospace and defense markets. The Company
is headquartered in Oxford, Connecticut.
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For more information please contact:
Media Relations
Phone: +41 43 317 71 11
Email: media.relations@ch.abb.com
ABB Ltd
Affolternstrasse 44
8050 Zurich
Switzerland
RBC Bearings
Robert M. Sullivan
203-267-5014
rsullivan@rbcbearings.com
Alpha IR Group
Michael Cummings
617-461-1101
investors@rbcbearings.com