ABB to Buy Thomas & Betts for $3.9B

ABB, the world’s largest maker of power-distribution equipment, agreed to buy Thomas & Betts Corp. for $3.9 billion to expand its North American distribution network and boost low-voltage equipment.

ABB offered 24% premium for each share of Memphis, Tennessee-based Thomas & Betts, the Zurich-based company said in a statement today. ABB is paying cash for the target, and said the deal will be accretive within the first year after closing.

ABB's CEO commented that “The key is that we’ve always had a decent market, but never had the opportunity to channel it, and the acquisition gives us a wonderful position to do that,”, “This fills one of the largest gaps in the company, which was not having a meaningful presence in the world’s largest low-voltage market.”